Using 17.04 Gnome, 
Kernel 4.10.0-28-generic

Problem is still here on Dell XPS 13 (9350).

Neither of this has no effect:
HandleLidSwitch=suspend
HandleLidSwitchDocked=suspend

PC still runnning after lid is closed. However lid state is reported
correctly.

$ sleep 5; cat /proc/acpi/button/lid/LID0/state
state:      closed

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https://bugs.launchpad.net/bugs/1574120

Title:
  Notebook doesn't suspend when lid is closed after update to 16.04

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