Confirmed in Mint 17 as of now. Steps to reproduce:
1. Right click on the desktop and select "Create Launcher..."
2. Select type "Application in Terminal". Type "bash" in both name and command, then press OK. After the dialogue closes, a launcher icon named bash should appear on the desktop.
3. Double click the launcher.
Confirmed in Mint 17 as of now. Steps to reproduce:
1. Right click on the desktop and select "Create Launcher..."
2. Select type "Application in Terminal". Type "bash" in both name and command, then press OK. After the dialogue closes, a launcher icon named bash should appear on the desktop.
3. Double click the launcher.
Expected result: x-terminal-emulator starts, running bash.
Actual result: xterm starts, running bash. You can confirm that it's xterm by running the command "pstree | grep bash".