I guess the problem is akin to the PWM of some led flashlights, where you pulse the thing so fast that it looks dimmer. It has something to do with the time it takes the diode to lase again after being blanked (rise time I believe it's called). If the blanking actually turns the diode off and then turns it back on, the effect is most noticeable. Some manufacturers use a current slightly below lasing threshold for blanking, so the laser is not really off, just not lasing, and it has a faster response.
As for possible models you may want, I can't really say. All I said is merely theory and some conjecture thrown in for good meassure, so I may be wrong on some of it or, more than likely, all of it :P
Remember the future?, That'd today, as you imagined it yesterday.