Thank you,

That's kind of correct. I had forgot to run

sudo update-initramfs -u

to propagate changes to the boot image. The boot somehow entered the
pretty purple 160-column mode either way, but the X driver would not
start.

It works now!

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https://bugs.launchpad.net/bugs/1088147

Title:
  Intel 915GM/GMA900 upgrade fails 12.04-12.10

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