Turns out, it's because Qubes comes with Xscreensaver enabled which overrides the XFCE Power Manager settings. Xscreensaver is only configured to blank the screen; I'm not sure if it even supports powering it off. To return control to XFCE, go to Menu > System Tools > Session and Startup > Application Autostart, and uncheck "Screensaver". Then you can logout, reboot, or go to Menu > System Tools > Screensaver > File > Kill Daemon. You may have to also open Menu > System Tools > Power Manager > Display, and switch "Display power management" to off and then on again.
Note this will disable the lockscreen. This is not recommended if you use a USB keyboard or mouse and a USB Qube, or if someone has physical access to your computer while it's on. Otherwise, I recommend enabling screen poweroff in order to conserve energy and lengthen the lifespan of your screen's backlight.
Thanks for adding that. Personally I don't want or need the lockscreen so for me it made more sense just to disable Xscreensaver altogether. Good to know you can have lockscreen and blanking at the same time though :)