Upstream says this is a gnome-settings-daemon bug.
** Package changed: xserver-xorg-video-intel (Ubuntu) = gnome-control-
center (Ubuntu)
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xrandr cycling is all messed up with KMS
https://bugs.launchpad.net/bugs/382864
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Sorry for not following up sooner, took a bit before I was rebooted
without KMS, which I needed to do in order to show this is not
(entirely) a gnome-settings-daemon issue. Here's the output of xrandr
*without* KMS:
$ xrandr
Screen 0: minimum 320 x 200, current 1680 x 1050, maximum 2048 x 2048
