Just echoing that rlwrap isn't needed. I actually added an arg (-n) to arc.sh that doesn't use rlwrap. I use it when running arc inside an emacs shell, because emacs has terminal integration that I prefer.
I started using ansi-term in emacs to launch a shell file which wrapped rlwrap around the file I wished to execute. Turns out that M-x no longer works in that buffer.