since "Terminal" does not seem to work on the emulator, I'm currently experimenting with text output using the graphics object itself.
This is why I wondered how many characters one could show per line using the default font (see this Gist, which you may also immediately load into the emulator and run).
The answer is: you can show 60 characters per line!
This means just 4 pixels per character (including spacing!)
I do not know how it will look on a real device, but it seems still readable on my desktop (ok, I have to admit, it uses a retina display...)