I have found a partial fix changing the cursor blinking behaviour.

With gconf-editor (or your prefered tool) look for  /apps/gnome-
terminal/profiles/Default/cursor_blink_mode and set the value to off.

The cursor doesn't blink but also doesn't show the outline.

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https://bugs.launchpad.net/bugs/890784

Title:
  Gnome-terminal continues to show outline cursor after getting focus

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