I was able to come up with workaround of sorts. After doing some
research, I figured out how to manually unload the radeon module, and
created an script to do that (attached) which I placed in init.d and,
after running update-rc.d, I got to work... sort of. Apparently it only
works properly when I am in single-user (recovery) mode (it did not work
here before though). The problem is that in normal mode it apparently
uses upstart for everything, and I haven't been able to find out how to
run the script properly via upstart.

** Attachment added: "script to manually unload radeon module"
   http://launchpadlibrarian.net/45460746/uloadradeon

-- 
[RS780 KMS] no poweroff on halt with KMS enabled
https://bugs.launchpad.net/bugs/569271
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which is subscribed to xserver-xorg-video-ati in ubuntu.

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