I find it particularly annoying that Emacs shell buffers do not offer satisfactory completions, but xterm does. I even used ansi-term for a while because of this (oh god). What I really wanted was for Emacs to show completions via auto-complete.el, like every other mode I use often. This package hopes to deliver on that promise.
Installation and more info: see .el file.
Pics to show off:
Auto fill in what you were probably going to type:
Tab from there, and show the files in that dir:
Readline completion is pretty smart: let us try to build emacs...