Kinda weird that the author mentions Ctrl-R but not readline. History searching actually works for everything that supports readline, e.g. bash, ipython, psql, henplus, etc, although personally I use page-up / page-down with:
The terminal experience becomes crappy when there is no readline support, e.g. everything on Windows, sqlplus, db2, etc. When there is no readline, I really can't love the terminal.