The only two applications I've been able to reproduce the issue with are
cat. If I
tail -f log/development.log or any file for that matter, and press CTRL-C to quit, when I type additional commands there is no keyboard echo to the screen. If I hit enter, the commands are run and they generate output, but still keyboard echo is broken.
An interesting tidbit is that I have been able to restore keyboard echo a few different ways:
running either of those commands will restore keyboard echo until one of the offending commands is exited with CTRL-C again.
I have tried setting my terminal emulation to rxvt and xterm-color, changing this does not seem to make a difference.