From your Code, two steps have to do:
Step 1
Although you code in Xamarin Android, but as in Java in the xxxActivity.java for terminalOutput invoke must be like this
TextView outputText = (TextView) findViewById(R.id.terminalOutput);
outputText.setMovementMethod(new ScrollingMovementMethod());
Method setMovementMethod() by parameter ScrollingMovementMethod() is the gimmick.
Step 2
And in the layout as in Java-Android also in activity_xxx.xml for the TextView Declaration as above must have to add this
android:gravity="bottom"
When you add new line into the outputText like this:
outputText.append("\n"+"New text line.");
It will scroll to the last line automatically,
and these all the magic for your need.