Visual block and cursor position

Hello,

I use Vim 7.4.52. I've recently started using the following autocommand:

au InsertLeave * normal! g`^

in conjunction with:

set virtualedit=onemore

to prevent cursor from moving one character to the left every time I
leave insert mode (I somehow cannot get use to this behaviour).

Almost everything works fine. The only problem (so far) is with
visual-block mode. Any editing task with such selection (eg. 'I') ends
up with cursor in "wrong" position i.e. cursor is positioned as in
default Vim, with no respect for the above code.

Is this some kind of bug inside Vim or maybe this is a well-defined
behaviour for visual-block mode?

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