I’ve had the distinct pleasure of watching movies on my Linux console in gloriously rendered ASCII characters, but as great as it was, it seems to me that an untapped wonderland of console movie technology exists. AAlib is an old standby for watching character-ized movies, but doesn’t handle color. While Libcaca does, it doesn’t seem to offer as high quality. Both projects can get very recognizable on high resolution consoles; just look at some of the screenshots.
But what I would like to see is a library that uses color and also uses the full Unicode character set. Many consoles can be configured to handle Unicode (mine is and large distros probably do by default), and there is no reason not to take advantage of that. The full range of Unicode characters would allow ridiculously high correlations between lines in the image and the console, increasing quality. So, someone do that.