This wouldn't be an emulation of a real terminal that exists, but rather a terminal emulation profile that enables as many non-conflicting escape sequences as possible.

Supported features would probably be: VT520, plus any K95 unique features (like its DCS hyperlinks), plus any xterm features that don't conflict.

The emulation would report a terminal type of K95 (or something similar if that's already taken) enabling a terminfo entry to be written for K95. This would enable modern hosts to take advantage of all of K95s features without K95 having to pretend to be xterm.

This wouldn't remove the need for an xterm terminal type (getting a terminfo entry for K95 distributed to the entire world isn't going to happen), but it should mean that pretending to be xterm won't be the only way to make more advanced features available.