Invaliding the compiz bug; this has nothing to do with compiz.
I, too, am not surprised that you're the first to try this. I've only
ever done X-over-SSH or used a more network-friendly protocol setup such
as xvnc, both of which work. Also, there's still an underlying :0 X
server which will be respecting the gdmsetup options.
Also note that Xgl is not a window manager, it's an X server :).
** Changed in: compiz (Ubuntu)
Status: New => Invalid
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XGL supercedes GDM for X server startup options
https://bugs.launchpad.net/bugs/150628
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