TERM is set to screen. I tried with
screen-256color, but then the colors went really nuts. I also tried
linux, and some others (that I could think of, not really thinking) but
screen is the closest I got - albeit not quite - to "pure" tty Emacs colors.
As you see below, the colors work (top window), only for some reason they show up incorrect as cyan, in the case of Emacs-w3m.
Also, probably related, the block, solid-color cursor that I had, got replaced by an underscore. I prefer the color-shifting block cursor - not the least because it is much easier to spot after a search. (Note: the cursor problem does not show below as I used the shell command to get the screenshots.)