It sounds like the best thing to do is simply to design a terminal around the PAL-1 and integrate it via the serial port. The only downside is that might be very similar to designing a whole computer (essentially) on its own, since it would need to have a CPU to drive it. Thankfully, I might have an answer to that because of the work my Dad put into things when he was designing a robot in the mid 70s -- he designed and built a little green-screen ASCII terminal that he used to communicate with the robot's hardware and also to make use of its internal computer to run ISIS-II -- all so he could wrap his head around writing for the 8080, 8085, and eventually, the 8096 lines of CPUs and microcontrollers from Intel.
I *have* since obtained some other chips which might be good candidates to help solve the problem -- an SMC CG5004 character generator that's mentioned in the original TVT-6 that Don Lancaster did, an MM5740AAE keyboard encoder (as found on the Apple I ASCII boards), and a Signetics 2513 CRT controller.
All three of these chips were rescued from some aging conductive foam and had to be cleaned, and because the foam damaged the pins on some of them, they will be put into new housings and soldered down to hopefully make them viable.
The CG5004 is the chip I'm the most concerned about, as it's a ceramic-and-gold package which did not fare too well in the foam and lost the ends of several pins in the process of getting all the rotten foam off of it. These things looked to be nearly unobtainium when I first started digging into the TVT-6, but if it functions, I might have something.
I also lucked into the datasheet for it, too -- so scanning that and uploading it will be another part of my task.