"Terminal" icon...what is it for?

I have a new MacBookPro, and I just noticed an icon for "Terminal" in the bar. When I click on it, it just says when I last logged in. What is the purpose of this and can I remove it?

Terminal is basicly a high tech way to find things in you directory. If you type certain things in it, it will tell you what it is and how much data, stuff like that. If you type say and then type something else like 'hi' or 'whats up', then press enter, it will say what you typed.
Which is the most limited defintion of the Terminal I've ever come across. It can also run Unix programs and in the hands of the inexperienced - like maybe those who think of it as a "high tech way to find things" - can easily erase your entire HD.

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