[SebiH]

Are you using an insider build or a different shell than Windows' cmd? I find myself using Putty to connect to a Linux subsystem ssh server just to get a decent terminal emulator with full colour support!

[Raticide]

Give this a whirl: https://github.com/mintty/wsltty

[Viper007Bond]

The latest Insider builds are a lot better, including full color support.

[vesinisa]

It's apparently coming to stable in April: https://news.ycombinator.com/item?id=13695267

[kylek]

You may be interested in ConEmu:

https://conemu.github.io/ https://conemu.github.io/en/BashOnWindows.html

[SebiH]

I did try conemu when bash for windows was first released, but ran into some problems. Will definitely try again, thanks! Though the wsltty linked below looks promising as well