iterm vim colorscheme not working

That color scheme looks like it only supports 256-color terminals. If Vim thinks that your terminal only supports 8 colors, you won't see that specific color scheme.

You can check this in Vim by:

:echo &t_Co

If that returns 8, this might be the problem. Try setting it to 256 in your ~/.vimrc and see if that helps:

let &t_Co=256

To those who still have problem.

iTerm 2 -> Preferences -> Profiles -> Colors -> Minimum contrast -> lowest

In order to turn code highlighting on in vim, try to enable the syntax plugin:

:syntax enable