I've been experimenting with a technique I call "deviation kerning", that allows one to kern monospace fonts while retaining the essential vertical alignment property that monospace provides.
I've created a Unix terminal emulator that implements this technique (and also contextual glyph substitution, which I've used chiefly for ligatures) and am currently living with it as my terminal; it hasn't exhibited any eye-melting tendencies yet :)
Details are at http://jttlov.no-ip.org/projects/monokern.htm, source code is at http://github.com/ec429/monokern. The font is based on xterm's default (12x6) font, but I'm also working on a slightly larger (18x8) Humanist font; I've drawn the glyphs but I haven't finished the kerning tables yet.
What do you think of deviation kerning? And is the 18x8 font readable? I'm aware that it's a mish-mash; that's because I tried to differentiate the characters (in code, legibility can be more important than readability). Does the 'e' fit?