OSC7 has security implications
Isn't the whole feature possible security hole?
OSC7 allows a remote side to rather easily set any arbitrary path. Including the hostname doesn't help so much, as that could be rather easily "guessed" or gathered by some other means. And the same in principle for any rogue user that one su/sudos to locally.
Sure, this doesn't open up the biggest holes in the history, but it might allow for subtle things: tricking a user into running/deleting/etc. stuff from another directory as he expects, after having opened another tab/window, and perhaps not checking the current working dir (or maybe not even having it printed in the prompt)