It seems that this is caused by the splash+vt.handoff boot options.
Apparently they are on by default, and the server cd uses a preseed to
shut it off.  The mini iso it seems does not do this.  I discussed it in
#ubuntu-devel, and there seemed to be consensus that either the option
should default to off, and if you install one of the -desktop packages,
it switch it on, or more likely, the vt.handoff machinery just needs
ripped out and we run X.org on tty1 to avoid screen flicker like other
distributions do.

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https://bugs.launchpad.net/bugs/831752

Title:
  Command-line Install on Minimal CD tries to boot graphically

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