It seems that the behaviour desired by this bug is the default in Ubuntu
13.10.

Note too that there are people lobbying to be able to sleep on lid-close
only when no monitor is connected as well! See
http://askubuntu.com/q/362337/17164

When I move to my desk, I close the laptop and use a nice large monitor.
There does not seem to be an option to avoid sleeping on lid close when
an external monitor is connected any more.

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https://bugs.launchpad.net/bugs/951790

Title:
  Laptop does not suspend on lid close when external display is
  connected

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