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On a server, you don't need to run X at all. Indeed, Ubuntu Server Edition does not include X. Of course, that means you must do everything in text mode, which is not much fun if you're also going to use the machine for other things.
For many people, it would definitely be nice to have the ability to run X on a server without compromising security. Actually, I've wanted to do that myself. So I would say that this is very good news. Thus, a big "thank you" to the developers from me. Edited 2010-06-26 03:10 UTC
Why not run the X11 apps remotely, displaying them to your workstation?
It is extremely bad practice to run X11 itself on a server, and many servers don't have onboard video or have an extremely lowend card intended only for the initial installation.