Based on the comments, it's clear the bug is not an xsplash issue, but
due to gpm. Moreover, a fix has been released, see
https://bugs.launchpad.net/ubuntu/+source/hal/+bug/372874/comments/10
** Changed in: xsplash (Ubuntu)
Status: New => Invalid
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xsplash dims and undims despite power settings disabling dimming the screen
https://bugs.launchpad.net/bugs/434353
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