I think this has been fixed by this commit here:
https://git.qemu.org/?p=qemu.git;a=commitdiff;h=d139e9a6cf01b8c31f59
... so closing this ticket now.

** Changed in: qemu
       Status: New => Fix Released

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https://bugs.launchpad.net/bugs/838974

Title:
  Confusing error report for missing vde support

Status in QEMU:
  Fix Released
Status in qemu-kvm package in Ubuntu:
  Triaged

Bug description:
  The error that appears in qemu 0.15 is "parameter 'type' expects a
  network client type" when trying to use vde for networking as if the
  parameter is wrong, but the problem is that the executable was
  compiled without vde support.

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