If I disable the kernel mode setting (i.e. remove the "modeset=1" parameter to 
the i915 kernel module), things go back to work properly.
Here is the xorg.0.log with kernel mode setting disabled.

** Attachment added: "Xorg.0.log"
   http://launchpadlibrarian.net/27832418/Xorg.0.log

-- 
[i965gm] lower reslutions no longer available on LVDS with 2.7.99 (KMS)
https://bugs.launchpad.net/bugs/385832
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