It may be a feature but I do not think it is not a bug, as long as it is not 
evident enough how to change that behaviour.
Surely it is not a limitation of the library it is built up on!

Here is how you do it; if you dint know!!

edit $HOME/.config/Terminal/terminalrc

Look for a line

MiscCursorBlinks=FALSE

and set it to TRUE.

Now you need to restart the xfce4-terminal.

-- 
NO blinking cursor in xfce4-terminal
https://bugs.launchpad.net/bugs/480683
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