Testing uncovered more information on this:

Running without Unity in classic mode does not cause the hard freeze.

The system sees the external monitor but it will not work.

If you have a window running glxgears, move it to the external
(nonworking) monitor and then unplug the cable, glxgears window returns
to the internal screen, but it is completely black. The state of the
window is lost. Likely the common Compiz hang is the same thing as this.

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https://bugs.launchpad.net/bugs/777944

Title:
  Plugging external monitor causes kernel hardlock

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