Would this also prevent the cursor from being hidden?

Thank you for this detailed response, it helps a lot. I'll start from compiling new kernel, with mentioned required functionalities built in, and experiment a bit with EFI support. I think I would like to stick to VZLinuxBootLoader, as Im planning to prepare a very specific distribution build, just for my needs, so this seems like the best way to go. But anyway, good to know there is an EFI option as well.