When the pointer moves even 1 pixel while mouse1 is pressed on top of the end of a line, the ENTIRE rest of the line gets selected (equaling the newline "character"). This happens very often when I just want to focus a terminal window and invariably kills the selection I keep in my middle-click buffer. This is extremely frustrating. I propose that text selection works like in text editors instead (case in point: gedit). The newline character ONLY gets selected when the pointer traverses into the next line while mouse1 is pressed.
Selecting is handled by vte, and the behavior has improved a lot. Cf. bug 11207 to see when xfce-term gets a newer vte.
Fixed by https://bugzilla.xfce.org/show_bug.cgi?id=11207