Yes, I'm using Intel. This morning (UK time) I checked for updates and
found there were some. After installing them I get exactly the same
behaviour as you. (With last night's state I could not use CTRL+ALT+Fn
to get console login. (I had to use an older kernel in recovery mode.)
However, as for you, startx, fails on my machine.

-- 
Intel couldn't allocate video memory
https://bugs.launchpad.net/bugs/430241
You received this bug notification because you are a member of Ubuntu-X,
which is subscribed to xserver-xorg-video-intel in ubuntu.

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