Tim, it works for me (both on VirtualBox and on bare Intel) on zesty:

$ ps aux | grep X
gdm      16258  0.0  0.1 262480 10676 tty1     Sl+  Mar17   0:00 
/usr/bin/Xwayland :1024 -rootless -noreset -listen 4 -listen 5 -displayfd 6
jeremy   22023  4.2  0.7 306516 58644 tty2     S+   09:19   0:01 
/usr/lib/xorg/Xorg vt2 -displayfd 3 -auth /run/user/1000/gdm/Xauthority 
-background none -noreset -keeptty -verbose 3

Bruce, it's not really Fixed in Xenial yet. If you take Ubuntu GNOME and
install the Nvidia proprietary drivers, your computer might fail to show
the login screen the next time you reboot. Yes, you can manually install
the missing package but it needs to be handled automatically. (It's
installed by the 304 and 340 packages but not newer ones.)

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https://bugs.launchpad.net/bugs/1559576

Title:
  Ubuntu GNOME boots to black screen when using proprietary Nvidia
  drivers

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