I can reproduce this here on hardy, however it does not seem to be a
displayconfig problem, more a problem with /sbin/shutdown. If I start
hardy, open a terminal and type "sudo shutdown now" the tty that used to
have gdm on it now has the friendly-recovery menu (/etc/event.d/rcS-
sulogin).

/sbin/shutdown is part of upstart, the last hardy upload happend a while
ago, so either this issue is around for some time or the actual problem
is somewhere else.

-- 
privilege escalation when canceling the low-graphics warning prompt
https://bugs.launchpad.net/bugs/190370
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