Interestingly, a similar bug was opened in 2006: Bug #38915
These bugs may be related, since people are also adding recent reports to that 
bug.

As a workaround, a suggestion posted in Bug #38915 seems to work for me:

In the [X-:*-Core] section of /etc/kde3/kdm/kdmrc add the following line:
TerminateServer=true

-- 
[hardy] No logout possible in KDE4
https://bugs.launchpad.net/bugs/198220
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