If I'm not wrong, /etc/profile is evaluated after logging in. If I'm using kdm for login, the term while logging in is 'dumb' so, PS1 isn't set anymore. Reproducible: Always Steps to Reproduce: 1. 2. 3.
this has a lot of history but i dont think ive heard this spin yet so ill let az look at it
Yes, tell konsole that you want a login shell.