Tracy follows Denys brilliant explanation with a question:

Does this mean that we can go back to the original statement and
connect dumb HP terminals using 10BaseT?

Yes.  You are just using the 10BaseT cable to carry the signal (just
like using flat satin cable).  You do, however, need to use a DB-25 to
RJ-45 adapter on the back of the terminal.  You could also use a DB-25
to RJ-11 if you wanted to wire up your own patch cables.

This allows for maximum flexibility.  You can very easily upgrade to a
networked pc by simply replacing the terminal with a pc and moving the
patch cable from the DTC to a hub.

A quick diagram (in words):

Terminal--patch cable--building wiring--punch down--patch cable--DTC


Bryan