I believe I got a blinking cursor by customizing (Nixing) the prompt itself. It's been a while since I've done that. I'll have to find my notes on it. I think I made the prompt colors and blinking cursor default for any terminal that way. It was something I was doing and tested it on ROX, LX, X, UX, and XFCE4 terminals, in Deb, Solydx, and LL at the time.
TC