It seems broken again on current Jaunty.
Steps to reproduce:
Xorg gets DPI from EDID:
(--) NVIDIA(0): DPI set to (85, 86); computed from "UseEdidDpi" X config
(--) NVIDIA(0): option
Appearances shows 96 DPI. Setting it to 96 keeps the default size,
setting it to 86 makes the fonts smaller.
"gconftool-2 --unset /desktop/gnome/font_rendering/dpi" removes the
default 96 DPI, the fonts get smaller (same size as manually setting to
86).
After logging out and in, the fonts are back to the default size (96).
** Changed in: gnome-control-center (Ubuntu)
Status: Fix Released => Incomplete
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GNOME default DPI doesn't match X default DPI
https://bugs.launchpad.net/bugs/157398
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