1) In Mountain Lion, through Preferences, you can change the setting of Terminal so that a new tab can be opened in the same directory as the opening tab. (i.e. if I am at ~/workspace and I open a new tab, then the new tab will be at ~/workspace).
2) Also in Mountain Lion, it is possible to have the title of the tab automatically reflect the current directory's basename via the following directive in ~/.profile:
# automatically change the title of the terminal window to the directory basename
PROMPT_COMMAND='echo -n -e "\033]0;${PWD##*/}\007"'
However, this also seems to remove terminal's ability to open a new tab in the same directory as the opening tab. That is, having 2) seems to make 1) ineffective. Is there a way to fix this issue so both of these things can happen at the same time?
