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As it turns out, you could even terminate the terminal session via Ctrl-C, make a change in the source code, compile it, and restart the notebook, and as long as you didn't do anything in your browser in the mean time you'd be able to immediately check whether the change were good in the notebook.

You are correct that Ctrl-D would only quite an active command line process. Ctrl-C will kill the notebook server, and then Ctrl-D kills Sage (if, for instance, you did some command line stuff before you did the notebook with the command notebook()).

I am a little surprised about no reference to the shut down. That should be somewhere.