I guess it makes some sense to have the core hybrid-capable.. Though, wouldn't any video chipset that can work with X (even with the generic vga or vesa drivers) be enough to work with UI1 since it's pre-rendered?
I'm just curious though.. Is it possible to install LMCE 0704 so that the core doesn't boot to X then (basically so it isn't a hybrid). I would imagine that it would perform better if you could do this and just serve X to the MDs.. All of the setup for the MDs (and any other services) is done via the web interface, correct?
Your right in a sense that any X capable chipset would suffice for purely UI1 rendering purposes. But often its useful to have the Core capable of playing media particularly when working with TV or streamed video.
Back in the very early days of Pluto (the ancestor of LMCE) it was possible to build an X free Core - in fact that was the only way to build a Core back then! But experience demonstrated that a Hybrid Core was far more flexible and was the configuration of choice for anyone who regularly did Pluto installs. Now however as far as i know there is no simple way to run an X free core.