You are running the vesa driver, hence the low performance.

(II) LoadModule: "ati"
(WW) Warning, couldn't open module ati
(II) UnloadModule: "ati"
(EE) Failed to load module "ati" (module does not exist, 0)

Did you remove the default xserver-xorg-video-ati and xserver-xorg-
video-radeon packages at some point?

-- 
Enabling the radeonhd driver on an x1550 fails...
https://bugs.launchpad.net/bugs/426970
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