This turned out to be a stupid configuration problem on my part. Sorry
for the noise...
** Changed in: fontconfig (Ubuntu)
Status: New = Invalid
** Changed in: gnome-terminal (Ubuntu)
Status: New = Invalid
** Changed in: xterm (Ubuntu)
Status: New = Invalid
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Fontconfig
** Attachment added: Magnification of screenshot
http://launchpadlibrarian.net/10989592/terminal-no-subpixel-rendering-large.png
** Also affects: xterm (Ubuntu)
Importance: Undecided
Status: New
** Also affects: gnome-terminal (Ubuntu)
Importance: Undecided
Status: New
** Attachment added: Screenshot of gedit, gvim, xterm and gnome-terminal
http://launchpadlibrarian.net/10989583/terminal-no-subpixel-rendering.png
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Fontconfig settings not used in all applications
https://bugs.launchpad.net/bugs/177552
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