The bug in Terminal.app is as follows:

After terminal recieves an AppleEvent or AppleScript command, it will no longer open files via AppleEvents or AppleScript.

To demonstrate, save a terminal window on the desktop. Launch the file by double clicking. This should work consistently.

Then run this Applescript:

tell application "Terminal"
activate
end tell

Now try double clicking the .term file. This should bring Terminal to the front but no new window will open.