Thanks for your report, It's now following the GNOME Settings, you can
disable it in Keyboard Preferences, for further reference:
http://bugzilla.gnome.org/show_bug.cgi?id=342921
** Changed in: gnome-terminal (Ubuntu)
Status: New => Invalid
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Blinking cursor can not be deactivated anymore
https://bugs.launchpad.net/bugs/188732
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