Ok my problem is solved. GNUStep terminal links Terminal in /usr/bin with its 
own Terminal Emulator. I changed that link to xfce4-terminal and it works 
again. I guess there is naming conflict with these two packages, as disucessed 
here:
http://www.nuxified.org/topic/gnustep_terminal_app_conflicts_with_xfce4_terminal

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https://bugs.launchpad.net/bugs/794720

Title:
  xubuntu desktop fails to respect "preferred applications"

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