Chris,
Alternatively, write yourself a sed filter. It's pretty easy. I'm in the middle of some family things atm, but I could whip something up for you later tonight or tomorrow.
The noise you're seeing are control characters mostly from your terminal colors (colored ls output etc) and cursor position manipulation.
I like the idea of a built-in filtering mechanism. However, there is risk inherent in waiting for a finished and done event before writing anything to disk. For example, there is a long-standing(?) nasty kernel bug recently discussed here (more than once I'm sure) where OSX crashes. Your current session logs would almost certainly be completely gone.
A bunch of Linux systems I manage (and need to fix) are currently set up badly and won't log the bash history until the shell exits cleanly - ie the logout event. Haven't had time to dig into why, but this is really irritating when a wifi drop kills the ssh session -> no logs.
-rick
Sent from my iPhone