Ok, so I searched for the patch to Xen mentioned in the upstream
discussion which was:

  x86: Mask X86_FEATURE_XSAVE in cpuid leaf 1, ecx, as we don't
  allow guests to use it (by setting cr4.OSXSAVE).

Together with the other comments I think I understand now that Xen
always has masked off OSXSAVE in the cpuid bits but not XSAVE. And the
newer kernel patch checks for OSXSAVE which is safe. Xen will set
OSXSAVE (together with XSAVE) in cpuid bits if it supports it and allows
the guest to use it, too.

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https://bugs.launchpad.net/bugs/1044550

Title:
  Update the EC2 work-around for the OSXSAVE issue in pv-ops

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