@jasonpecor, I ran your code but with DeviceOS 0.8.0-rc12. I also added SerialLogHandler logHandler(LOG_LEVEL_ALL); and SYSTEM_THREAD(ENABLE). With the latest RC release, I cannot duplicate the odd blinking pattern you had with 0.7.0. However, the Photon was going offline and, after a period of flashing cyan, flashing orange and more flashing cyan, it comes back online.
I then left the Photon in Safe mode to reprogram it with threading disabled. This was this morning and I only got back to it at 5pm or so. Now, everything is working and not going offline. I wonder if the issue was related to the Blynk servers?