Your fix will work until update-grub is run by you or by a script.
For it to work permanently, you should modify /etc/default/grub.
You can edit the line
GRUB_CMDLINE_LINUX_DEFAULT="quiet splash" , deleting the words quiet splash. Also change or insert the line
GRUB_CMDLINE_LINUX . . . to read
GRUB_CMDLINE_LINUX=nomodeset
or whatever option(s) you want

Then run update-grub. This will give an aesthetically pleasing scroll of boot processes.
At least that's the way it used to be. I gave up on Grub2 and use "legacy" Grub, which is much simpler and more convenient, in my opinion.

More permanent solution to the Ctrl-Alt-F1 to Ctrl-Alt-F6 blank screen problem
 

I tested impert's suggestions in detail and arrived at the following fix.
In interest of readability I repeat myself.

My five points are as follows:

1) I first discovered that Ubuntu does not use /etc/inittab ... so workaround suggesting modifications thereof are unhelpful.
2) Lack of inittab is not a problem if it turns out that getty is running. Do a top and check that getty or mingetty is running.
3) To be really sure getty is running, do ctrl-alt-f1 and assume you are at a login screen even though screen appears blank.
Log in as root (on Ubuntu I always enable root) and type reboot. For me it worked. That confirmed that I did
have a functioning terminal -- but it was invisible.
4) Modify /etc/default/grub looking to delete "quiet splash" as has been suggested several places and
make the following specific changes:
5) As root, run update-grub and reboot.. Problem solved!

It is entirely possible that even more minor changes to /etc/default/grub will work ... but I only tested this far.