Update:
I made another experimental installation with openbox only, and 
/etc/environment was read successfully. Then I removed all lxde elements from 
the main installation, with the exception of lxterminal, which does not depend 
on any other lxde files, plus my temporary 98environment script mentioned 
above. /etc/environment is now being read successfully in this installation as 
well.

Therefore, it seems to me that the source of the problem lies somewhere
in the lxde libraries.

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/etc/environment not being read in Lucid
https://bugs.launchpad.net/bugs/524761
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