I just installed xserver-xorg-video-ati and now it looks like it's
loading the driver successfully, regardless of radeon.modeset - I tried
both 0 and 1 and they are looking good.

Not sure if it's relevant, but I am pretty sure I removed xserver-xorg-
video-radeon originally, and not xserver-xorg-video-ati.

Anyway, all of the above should cement your opinion that most of this
bug report is probably inaccurate and the bug reporter is feeding you
porkies - sorry about that.

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[KMS] White Screen instead of desktop after 10.10 update (ATI Mobility Radeon 
7500 card)
https://bugs.launchpad.net/bugs/655099
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