PiScreen will blank…however this is after a number of minutes (i think it is 10) as this is the default settings for X windows. So if it is blanking after a number of seconds, there may be something configured incorrectly with the screensaver or power saving settings within X Windows.
Regarding the terminal on power up, have you followed the instructions on this page?
Once you get the console enabled on PiScreen, try and disable X windows for auto loading to see if you get the same problem. You can use raspi-config to stop X windows from loading after boot.
Mark --OzzMaker.com --