I finally managed to get the problem fixed. The issue is not with the
iwlwifi modulce, it is with ubuntu's new dns resolver. I edited
/etc/NetworkManager/NetworkManager.conf and commented out the
dns=dnsmasq line. From then on, all problems have disappeared. I am
refiling this bug as the dnsmasq bug.

** Package changed: linux-backports-modules-3.2.0 (Ubuntu) => dnsmasq
(Ubuntu)

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https://bugs.launchpad.net/bugs/1058089

Title:
  Intel 5100 AGN (iwlwifi) hangs frequently -- intermittent operation

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