After diving deeply into X manainer scripts and other stuff, I found the
problem. The livecd uses /usr/bin/dexconf to generate xorg.conf. If you
look at line 191, you'll see

QEMU_KVM=$(grep "QEMU Virtual CPU" /proc/cpuinfo || true)
if [ -n "$QEMU_KVM" ]; then
    DEVICE_DRIVER="cirrus"
fi

So the script blindly uses the cirrus driver if it is started under
qemu/kvm. I think it is not so difficult to fix it, and will post a
patch if I can write one.

-- 
x not starting in kvm with std vga
https://bugs.launchpad.net/bugs/338219
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