I am also affected. I don't use several viewports but I use Compiz's keybinding for "Show desktop". Once, using this shortcut, the desktop was shown and brought back the terminal's cursors stops blinking and can't be revived.
Changing the above mentioned dconf settings doesn't help, neither cursor-blink-time nor cursor-blink-timeout. System: Ubuntu 12.04.2 LTS (precise) Relevant packages: compiz 1:0.9.7.12-0ubuntu1 gnome-session-fallback 3.2.1-0ubuntu8 gnome-terminal 3.4.1.1-0ubuntu1 lightdm 1.2.3-0ubuntu2.1 linux-image-generic-lts-quantal 3.5.0.32.39 nvidia-current 304.88-0ubuntu0.0.2 xorg 1:7.6+12ubuntu2 xserver-xorg-core-lts-quantal 2:1.13.0-0ubuntu6.1~precise3 xserver-xorg-lts-quantal 1:7.7+1ubuntu4~precise1 -- You received this bug notification because you are a member of Desktop Packages, which is subscribed to gnome-terminal in Ubuntu. https://bugs.launchpad.net/bugs/1096810 Title: Loosing cursor blinking when switching viewport either on Unity or Openbox Status in “gnome-terminal” package in Ubuntu: Confirmed Bug description: When I switch viewport (virtual desktop) and I've got a focussed or unfocussed gnome-terminal open, it (most of the times but not always) looses the blinking cursor. When I've on the shell, then it's lost, when I'm on Vim I need to move and exit insert mode to see the cursor again. ProblemType: Bug DistroRelease: Ubuntu 12.10 Package: gnome-terminal 3.6.0-0ubuntu1 ProcVersionSignature: Ubuntu 3.5.0-21.32-generic 3.5.7.1 Uname: Linux 3.5.0-21-generic x86_64 ApportVersion: 2.6.1-0ubuntu9 Architecture: amd64 Date: Mon Jan 7 09:53:14 2013 InstallationDate: Installed on 2013-01-06 (0 days ago) InstallationMedia: Ubuntu 12.10 "Quantal Quetzal" - Release amd64 (20121017.5) MarkForUpload: True ProcEnviron: LANGUAGE=en_GB:en PATH=(custom, no user) XDG_RUNTIME_DIR=<set> LANG=en_GB.UTF-8 SHELL=/bin/zsh SourcePackage: gnome-terminal UpgradeStatus: No upgrade log present (probably fresh install) To manage notifications about this bug go to: https://bugs.launchpad.net/ubuntu/+source/gnome-terminal/+bug/1096810/+subscriptions -- Mailing list: https://launchpad.net/~desktop-packages Post to : [email protected] Unsubscribe : https://launchpad.net/~desktop-packages More help : https://help.launchpad.net/ListHelp

