Update: I've fixed the problem, for now. Here's what I've done.

First, I have an Intel 965GM onboard gfx card. Recently Intel released
its own official Linux Graphics Driver Installer, and I used that. It
didn't fix the problem.

The I noted that in ~/.xprofile, I had the following: 
export UNITY_LOW_GFX_MODE=1

I'm not certain if that was there before due to previous monkeying
around or not. But I removed that .xprofile, restarted, and the Unity
Launcher is now working properly.

I can't say if it's the Linux Graphics Driver Installer, the .xprofile
set to low gfx mode, or both. But if you have an intel gfx card, you
might want to try the official driver installer and check/nix any
.xprofile that is set to run in low gfx mode.

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https://bugs.launchpad.net/bugs/1078075

Title:
  Unity laucher leaves a trace when autohide is enabled (using llvmpipe
  acceleration)

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