I found it, I found it, I found it !
It's the X.ORG server itself. That one got upgraded as a "side effect" on my system two days ago.
Once I had downgraded it from 7.4-43.1 to 7.4-17.6.1 all works again.
My mouse pointer no longer gets stuck on either screen, "keytouchd" works again and most importantly, heavy keyboard activity does no longer Signal 11 the X11 server!
For all SuSE users out there who run the latest NVIDIA driver, stay away from that buggy X.org distro - this one took almost a day of my life to figure out....