An update on where I'm up to with this.
Summary so far is, I had the blinking out problem once every couple hours. Occasionally that blinking out would lead to snow which required monitor restart.
I had my brand new mac mini swapped out with another brand new mac mini by an apple genius. The new mac mini also exhibited exactly the same problems
I ended up changing to a Mini Display Port to DVI adapter and never experienced a single blink with that setup. But obviously that stopped me from using two screens, and also stopped me from connecting my mac to my hdmi TV.
I reconnected up the original HDMI to DVI adapter to my monitor today to make sure my mac was still experiencing the same problem. Within 10 minutes of power up I saw my first blink. Now having confirmed I was still experiencing the issue, I applied the firmware update 1.7 from apple.
So far after a period of about 30 minutes, I haven't noticed a flicker yet. Those who've had the problem instantly recognise that 30 minutes is no where near a long enough test to confirm a fix.
I will continue my staring competition/torture, err I mean testing of this display and I will report back my results once I've either got confidence that this is fixed, or when I experience a blink again.
I will also say that the washed out color problem remains. I freely admit that I haven't tried to calibrate this monitor at all yet, but really I shouldn't need to.
Finally, good luck to everyone out there who experienced the problem and are now trying this fix.