Thanks rackerjoe. That change sounds quite plausible. And the explanation 
helped greatly to understand how things are meant to be. I initially tried to 
reproduce with a PV guest (because that is at least in EC2 the more common 
type). Though that did not work (or rather it failed not to work). Will try 
again with a HVM guest.
Another thing which is now clear is that this has not been a regression within 
Saucy but was there on release. Just not tried when running in a Xen guest.

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https://bugs.launchpad.net/bugs/1248025

Title:
  libvirt-bin fails to start inside Xen

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