Issue is definitely related to DPMS. Disabling DPMS altogether prevents the screen from turning off completely in turn preventing it from failing to turn back on. Screen still blanks when I lock the screen but backlight remains on and the screen doesn't go to "power saving" mode. 
I have updated to the latest kernel from drm-intel-next (found here: http://kernel.ubuntu.com/~kernel-ppa/mainline/drm-intel-next/) and the issue still exists in 3.12.0-997.
It seems this issue has also been noted on the Pixel here: https://code.google.com/p/chromium/issues/detail?id=257457
On the new Kernel I installed the Error is slightly different. dmesg shows:
[ 1927.534343] [drm:intel_dp_start_link_train] *ERROR* too many full retries, give up
[ 1927.558323] [drm:intel_dp_start_link_train] *ERROR* too many full retries, give up
[ 1927.582264] [drm:intel_dp_start_link_train] *ERROR* too many full retries, give up
[ 1927.606214] [drm:intel_dp_start_link_train] *ERROR* too many full retries, give up
[ 1927.630118] [drm:intel_dp_start_link_train] *ERROR* too many full retries, give up
[ 1927.654053] [drm:intel_dp_start_link_train] *ERROR* too many full retries, give up
[ 1927.677958] [drm:intel_dp_start_link_train] *ERROR* too many full retries, give up
[ 1927.678207] [drm:intel_dp_complete_link_train] *ERROR* failed to train DP, aborting
and also:
[ 2288.677894] ------------[ cut here ]------------
[ 2288.677931] WARNING: CPU: 0 PID: 1279 at /home/apw/COD/linux/drivers/gpu/drm/i915/intel_dp.c:2683 intel_dp_link_down+0x1dc/0x210 [i915]()
[ 2288.677933] Modules linked in: hid_generic hidp hid nfnetlink_queue nfnetlink_log nfnetlink joydev parport_pc ppdev x86_pkg_temp_thermal intel_powerclamp rfcomm coretemp bnep kvm_intel kvm cdc_mbim arc4 nls_iso8859_1 cdc_ncm usbnet cdc_wdm uvcvideo cdc_acm mii iwldvm videobuf2_vmalloc snd_hda_codec_hdmi videobuf2_memops videobuf2_core mac80211 ext2 snd_hda_codec_realtek btusb bluetooth videodev snd_hda_intel snd_hda_codec snd_hwdep snd_pcm thinkpad_acpi iwlwifi nvram snd_page_alloc snd_seq_midi snd_seq_midi_event snd_rawmidi cfg80211 psmouse snd_seq microcode snd_seq_device serio_raw snd_timer lpc_ich snd mei_me soundcore mei tpm_tis intel_smartconnect lp mac_hid parport dm_crypt crct10dif_pclmul crc32_pclmul ghash_clmulni_intel aesni_intel i915 aes_x86_64 lrw gf128mul glue_helper ablk_helper cryptd i2c_algo_bit ahci sdhci_pci drm_kms_helper libahci sdhci drm wmi video
[ 2288.677989] CPU: 0 PID: 1279 Comm: Xorg Tainted: G        W    3.12.0-997-generic #201311050452
[ 2288.677991] Hardware name: LENOVO 3443CTO/3443CTO, BIOS G6ET96WW (2.56 ) 04/29/2013
[ 2288.677993]  0000000000000a7b ffff88020ffd3a58 ffffffff81739f5f 0000000000000007
[ 2288.677997]  0000000000000000 ffff88020ffd3a98 ffffffff810675fc 0608000400000000
[ 2288.678001]  ffff8800362b30c8 ffff880035c7c000 ffff8800362b1000 ffff88021244f000
[ 2288.678004] Call Trace:
[ 2288.678010]  [<ffffffff81739f5f>] dump_stack+0x46/0x58
[ 2288.678015]  [<ffffffff810675fc>] warn_slowpath_common+0x8c/0xc0
[ 2288.678019]  [<ffffffff8106764a>] warn_slowpath_null+0x1a/0x20
[ 2288.678034]  [<ffffffffa0116c8c>] intel_dp_link_down+0x1dc/0x210 [i915]
[ 2288.678049]  [<ffffffffa011a7b8>] intel_disable_dp+0x78/0x90 [i915]
[ 2288.678064]  [<ffffffffa0104c15>] ironlake_crtc_disable+0x195/0x2a0 [i915]
[ 2288.678077]  [<ffffffffa0104f34>] intel_crtc_disable+0x34/0x150 [i915]
[ 2288.678090]  [<ffffffffa01086b5>] __intel_set_mode+0x105/0x360 [i915]
[ 2288.678103]  [<ffffffffa0109fe6>] intel_set_mode+0x16/0x30 [i915]
[ 2288.678115]  [<ffffffffa010a29d>] intel_crtc_set_config+0x29d/0x310 [i915]
[ 2288.678119]  [<ffffffff811d0290>] ? __pollwait+0xf0/0xf0
[ 2288.678133]  [<ffffffffa003123c>] drm_mode_set_config_internal+0x5c/0xe0 [drm]
[ 2288.678144]  [<ffffffffa00340a0>] drm_mode_setcrtc+0x310/0x4c0 [drm]
[ 2288.678154]  [<ffffffffa0023eba>] drm_ioctl+0x4da/0x600 [drm]
[ 2288.678165]  [<ffffffffa0033d90>] ? drm_mode_setplane+0x3f0/0x3f0 [drm]
[ 2288.678169]  [<ffffffff811cf43a>] do_vfs_ioctl+0x7a/0x2e0
[ 2288.678172]  [<ffffffff811bd251>] ? vfs_read+0x111/0x180
[ 2288.678175]  [<ffffffff811cf731>] SyS_ioctl+0x91/0xb0
[ 2288.678179]  [<ffffffff811bd490>] ? SyS_read+0x70/0xa0
[ 2288.678182]  [<ffffffff8174f7ad>] system_call_fastpath+0x1a/0x1f
[ 2288.678185] ---[ end trace 17a901f12eb53208 ]---