ULID's presentation format is probably better for humans, though. You can double-click-to-highlight a ULID; the standard UUID representation doesn't like this.
(You can use ULID's presentational tools with UUIDv7, though.)
You're right that there isn't a good standard way to configure this, but a lot of terminals should be able to do it. The magic phrase is “word characters”. I know Konsole, gnome-terminal, iTerm2, Terminal-dot-app at least have this setting.
Yep, I know about that (and WORDCHARS in zsh, for keyboard navigation). The thing is, though, UUIDs overload the dash character. I don't want dashes to be word characters except for a UUID.
(ULID representations also are shorter because they use a wider character set, which is nice though not critical.)
https://developer.mozilla.org/en-US/docs/Web/CSS/user-select