My colour scheme uses a black background. gedit seems hardwired to use a black
text cursor. Obviously theses two situations are not compatible!

Either ...
1) the cursor colour should match the text colour (green in my case)
2) hardwire all gedit colours. e.g. force background to white, cursor to black
3) recognise arguments for the XWindow colours e.g -fg green -bg black,
... and act on them!-)
3) document gedit's own arguments for setting window colours e.g.
text colour, background colour, cursor colour, pointer colour, 
and act on them.


Other information:
I use a colour scheme which has green text on a black background. Black reduces
the amount of radiation given out by the monitor, and according to psychometric
tests, green is the least stressful colour. Hence minimum headaches and stress!-)