I found the fault: installer failed to properly configure ubuntu:

"/etc/modprobe.d/blacklist.conf" must contain "blacklist rt2800pci"
which interfered with the wlan somehow.

Now the button does not blink but stays on,
I see all available networks
I see signal strengths

i.e. works just as good as openSUSE

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https://bugs.launchpad.net/bugs/753087

Title:
  wlan displays only 100% signal wireless networks

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