In bash shell with emacs key-binding, you can use key combination like M-f, M-b to move one word forward or backward on the shell prompt respectively. Usually, the meta key
Going all zombie resurrection here, but for sake of posterity --
This post got it working as you desire for me, for M-b and M-f, while keeping 'Option Key as Meta' set so you don't sacrifice a modifier (I have vim mappings using meta, personally).
In summary, in your Global Keyboard Profile, add two new mappings with settings:
man ascii)The only thing I still miss from Terminal.app is Opt-Backspace to delete by word. There are other workarounds for that, but I'm just trying to train myself to use Ctrl-w.