I called Apple Support yesterday and reported the problem. The guy had me power off my Mac Pro and hold the power button for 7 seconds, which resets something but I'm not sure what. After that he had me re-install the Apple Cinema Display Update v 1.0. I got a case number, too. I was suspecting that the problem was related to the computer going to sleep, so we tried to trigger the problem by putting the machine to sleep by tapping the power button, and also by setting it to sleep in 1 min (which didn't seem to actually put the machine to sleep in 1 minute, just the display). We couldn't reproduce the audio problem in this way.
The audio on the display worked fine for the rest of the day (10 AM - 10 PM), even with some 1-2 hour sleep periods while I would go for lunch, etc. But upon starting up the machine this morning the audio wasn't working again. I called Apple Support with my case number and got to talk to a senior advisor. We tried to trigger the problem with various sleep methods again (sleep via the Apple menu, 1-minute sleep and waiting for 15 minutes or so), but could not re-trigger the problem. I told him about the log message I found related to this issue (posted above), and I emailed him my logs which he will show to an engineer. He said that after a few days they will call me back to let me know what they found out.
So, it seems the problem is related to long sleep periods, such as overnight. Has anyone observed the problem occurring with no sleep involved?
Despite whatever home-remedies you find to temporarily fix the problem, it would be best if everyone reported this problem to Apple Support so that we can motivate a fix. The senior support advisor let me know that the Cinema Display is not on his list of "emerging issues".
I'll post back when I hear from Apple Support again.