Did a complete shutdown of iMac and Thunderbolt display...this time with no USB devices attached...
Starting up iTunes plays music for maybe one minute over the Thunderbolt display loudspeakers and then stops...
Interestingly the kernel log shows following then:
Oct 28 15:09:46 imac27 kernel[0]: USBF: 241.174 The USB EHCI driver found a controller at the wrong PCI Power State (0xffff) - fixing that issue.
Oct 28 15:09:46 imac27 kernel[0]: USBF: 241.288 AppleUSBEHCI[0xffffff8025be8000]::UIMInitialize - could not get chip to come out of reset within 100 ms
Oct 28 15:09:46 imac27 kernel[0]: USBF: 241.288 AppleUSBEHCI[0xffffff8025be8000]::UIMInitialize - Error occurred (0xe00002c9)
Oct 28 15:10:21 imac27 kernel[0]: USBF: 275.527 The USB EHCI driver found a controller at the wrong PCI Power State (0xffff) - fixing that issue.
Oct 28 15:10:21 imac27 kernel[0]: USBF: 275.641 AppleUSBEHCI[0xffffff802a538000]::UIMInitialize - could not get chip to come out of reset within 100 ms
Oct 28 15:10:21 imac27 kernel[0]: USBF: 275.641 AppleUSBEHCI[0xffffff802a538000]::UIMInitialize - Error occurred (0xe00002c9)
Oct 28 15:10:46 imac27 kernel[0]: USBF: 301.293 The USB EHCI driver found a controller at the wrong PCI Power State (0xffff) - fixing that issue.
Oct 28 15:10:46 imac27 kernel[0]: USBF: 301.407 AppleUSBEHCI[0xffffff8025a82000]::UIMInitialize - could not get chip to come out of reset within 100 ms
Oct 28 15:10:46 imac27 kernel[0]: USBF: 301.407 AppleUSBEHCI[0xffffff8025a82000]::UIMInitialize - Error occurred (0xe00002c9)
Oct 28 15:11:04 imac27 kernel[0]: USBF: 318.586 AppleUSBEHCI[0xffffff8025a82000]::UIMInitialize - could not get chip to halt within 100 ms
Oct 28 15:11:04 imac27 kernel[0]: USBF: 318.586 AppleUSBEHCI[0xffffff8025a82000]::UIMInitialize - Error occurred (0xe00002c9)
Oct 28 15:11:04 imac27 kernel[0]: USBF: 318.702 AppleUSBEHCI[0xffffff8025a82000]::UIMFinalize - could not get chip to halt within 100 ms
Then no further USB entries in the logs...