I forgot to mention in my original post: I am not running emerald.  Here
is the list of the  various related processes:

usr/bin/gtk-window-decorator --replace
/usr/bin/compiz.real --ignore-desktop-hints --replace --loose-binding 
--sm-client-id default0 ccp
/bin/sh /usr/bin/compiz --sm-client-id default0

Also, to rule out me breaking something by changing settings in the
"Advanced Desktop Effects Settings" dialog, I tested creating a brand
new user and enabling the desktop effects there. The issue still
occurred.

-- 
[gutsy] Background walllpaper + desktop icons disappear when compiz runs
https://bugs.launchpad.net/bugs/160226
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