Wayland doesn't suffer from screen tearing, the compositor brings. It is however wayland-native, and thus it doesn't require xwayland to run. Termite is a terminal application like urxvt, gnome-terminal, etc. In Wayland, the compositor handles the tasks traditionally handled by the window manager and by X.
It basically handles the functions of i3 and X on its own. My setup: Sway, Waybar, Termite, Vim, libvirt/qemu/KVM, and quite a few Gnome applications that are wayland native.
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Its great for hunting software alternatives, figuring out what dependencies belong to what package, searching the AUR for git packages, and tracking what you've done with pacman by date. Its a Qt/python application that gives you a graphical interface to get data about software installed on your system, available in the repos, and available in the AUR. One of my favorite pieces of software for Arch is pkgbrowser. Hell you might even consider installing Sway after you get i3 all setup and then just leave it in case some upstream problem breaks X- copy your i3 config over to Sway, make a few changes, and then leave it in case a problem happens. I've been using Sway for months now and the experience has been great. Termite is a good wayland-native terminal. Sway is a wayland-compositor that is basically i3. I3 is great, but you may also want to investigate Sway.