Bug#584801: closed by Julien Cristau <jcristau@debian.org> (Bug#584801: fixed in xterm 260-1)

[dickey@his.com]

Quoting Harald Dunkel <harri@afaics.de>:

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> The text between umlaut and the end of the line is still cut off.
> Is this expected?

yes -- the line-ending exits from the mode where xterm is collecting
a long string.  The point of the change to include the brokenStringTerm
resource setting is to allow a newline to do this.  Otherwise, it would
wait for the proper string terminator character, which is something you
are not likely to enter on the keyboard.