In my case (utopic, xfpm 1.4.1), setting the lid close action to 'switch
off display', works as expected: the system does not suspend. I've
attached a xfpm debug log for that case.

** Attachment added: "xfpm_debug_switch_off.log"
   
https://bugs.launchpad.net/ubuntu/+source/xfce4-power-manager/+bug/1307545/+attachment/4297412/+files/xfpm_debug_switch_off.log

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https://bugs.launchpad.net/bugs/1307545

Title:
  Power Manager settings are ignored when closing laptop lid

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