I have always understood "terminal" in this case to just mean "final" or "the end of"- the final, or end of growth from the crown, not death. I think we take "terminal" to mean death from hearing about terminal diseases.
Cattleyas, for example, typically have terminal spikes (the spike is the final/end of growth of that particular pbulb)- the difference being that in Cattleyas, being sympodial, unlike Phals (monopodial), it's normal and doesn't affect the ability to continue growing normally.
But, since a Phal with a terminal spike can no longer grow from the crown, basal and spike keikis are likely if the plant is otherwise healthy. BUT - basal keikis may take some time to become bloom size. So, I'm still not happy to see a terminal spike on my Phal