I use terminal in VSCode very often, so I almost always have it open. It defaults to opening at the bottom of the window, but if you move it to the side so it’s stretched vertically, you gain so much more useable screen real estate for your actual code without sacrificing too much readability in the terminal.
Or even better — Right click on the terminal panel label and select the option to move it into the editor area.
The editor area has far more flexibility around placement and sizing. than any of the panel areas. I also keep a terminal (or three) open permanently, but it’s usually tiny - around 1500x400 pixels (my VSCode window is about 3800x1600).
This would be even better if vscode let you have multiple windows of tabs open at the same time!