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

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https://bugs.launchpad.net/bugs/1096810

Title:
  Loosing cursor blinking when switching viewport either on Unity or
  Openbox

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