The lack of readline support in XSB used to drive me mad. This deficit has been noted by others.
There is in fact a simple solution. Perhaps this is obvious, but I only just discovered it, and I couldn’t find it on a google for xsb readline so I’ve included it here:
* Install rlwrap
* Add something like the following to your .profile:
alias xsb="rlwrap -C $HOME/XSB/bin/xsb"
Suddenly interactive programming with XSB becomes ten times easier..