I just now saw this post and it got me wondering. Perhaps it is a good idea to leave most of the presentation work to the MUD client. A stream of output from the MUD that includes a lot of terminal control codes for cursor positioning etc would probably be harder to parse for highlighting or trigger purposes. You don't specify what presentation features you wish to add to a MUD server using curses. I am well familiar with which manages to have a status line, a fixed input area below the MUD output window, lets you conveniently read text that has scrolled off the top of your window, etc. will send colour codes in a non-terminal dependent way.
What extra presentation features are you after?
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