I don't know what exact this command did but Alt+Enter worked after
that. The side effect, though, was that it squeezed the window a bit so
that I couldn't even see the bottom of the terminal.
gnome-settings-daemon is, like it sounds, a daemon used by gnome that
manages gnome session settings, probably the reason that gnome-terminal
wouldn't start is because it may require the settings daemon to be
running, I am unsure as to what you mean by "squeezed the window" but
it's probably a result of one of those settings(or so it would seem,
intuitively), when I accidentally had this running at one point, I
noticed a lot of different things. but if you're not using gnome, you
might be better off using another terminal emulator anyways
Alex K