How to implement text editing features in terminal interface?
There are ways to navigate in the terminal but they don't use the macOS keystrokes for navigation as the BASH shell actually predate macOS/NeXT. For example CtrlA moves to the beginning of a line and CtrlE moves the cursor to the end of a line. A quick search online on BASH shell keyboard shortcuts will yield a whole list like this, for example.

As an alternative BBEdit is a text editor that has been around on the Mac for ever. Way Pre-OS X. And one of the features is a command line window that acts much like a text editor and uses the standard Mac keybindings. But then you'll have to buy a programmers text editor to get the features you want in a shell window.

Might be best if you just learn the BASH keybindings, as that is lots cheaper ;-)