Another 'vote,' to advise that this de-featuring has crept through
related gnome-power-preferences options, not just lid-closing:
Some desktop keyboards feature overly-prominent "Suspend" buttons.
The "Do nothing" option has disappeared for suspend button behavior as well.
Sometimes "Suspend" still does not work and it's helpful to be able to avoid
foot-shooting until there's time to debug it properly.
It looks like you've bisected this already, but re: the Suspend option,
somehow I have two systems cdromupgrade'd to 9.10, one ('CD-only') still
offering "Do Nothing", the other (all updates through December 1, 2009)
not. I'm not in front of them to check version numbers, but locally
machines with 2.28.1-0ubuntu1 all lack it.
[Suspend trouble is a failure to resume on HP Compaq SR1611NX desktops, using
the "HP" A8AE-LE "Amberine" motherboard with no added hardware for those who
care.]
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[Regression] No "do nothing" for laptop lid closed action
https://bugs.launchpad.net/bugs/416236
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