I know this is an old post but as one who also faced the same issue, the
solution is simple. Upgrade to 14.04.4. The issue is caused by some
kernel incompatibility with hardware on XPS 8700, kernel 3.18 and 3.19
seem to fix it.

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https://bugs.launchpad.net/bugs/1389006

Title:
  [Dell XPS 8700] USB mouse and keyboard unresponsive after last update

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