well, with calling dpkg-reconfigure xserver-xorg (what the liveCD does) your 
boot takes about 1min longer ...
we only switched because to many people complained about the speed of the old 
method. there is surely room for improvement but its very unlikely that we'll 
switch back to the slow ressource hungry variant.

-- 
ltsp does not configure xorg.conf correctly
https://bugs.launchpad.net/bugs/149006
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