Update to #30 Upon further investigation
On 14.04, the files in /usr/bin are binaries.
-X is a suid wrapper binary
-Xorg is the actual binary

On 16.04, they are scripts.
-X is a link to Xorg
-Xorg is a script, calling the actual executables in /usr/lib/xorg/.

It seems the Xorg script in /usr/bin should check if the binary wrapper
"Xorg.wrap" is present in /usr/lib/xorg. If it is, act as a suid wrapper
and use /etc/X11/Xwrapper.config as it's config file(according to the
man page for Xorg.warp), otherwise exec /usr/lib/xorg/Xorg directly.

So it seems the problem is that the legacy package is not installing the
Xorg.wrap binary (perhaps in only some cases???) as many users report
editing Xwrapper.config has no effect.

Also, dpkg -S Xorg.wrap shows no matches suggesting this may be an

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  Unprivileged xinit wont start in unallocated vt

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