Comment 22 for bug 358796

Yes, this has been "unfixed". Not only is the patch missing from the xfce4-terminal-0.4.8 sources available from the xubuntu repos, but the changelog entries referencing this bug and that patch are gone too. I grabbed the patch from an earlier xubuntu diff, and it applied okay (with offsets) and the package built fine. But the change had no effect regardless of where I put the ScrollingAlternateScreen=TRUE config entry.

At that point, "sudo apt-get install gnome-terminal" and right-clicking my terminal launcher to change it to point to GNOME Terminal was a quick and easy workaround for me; if there were any huge dependencies, I already had them installed.