a naked xterm is not going to be useful to 95% of the users anyway, and the remaining 5% can just as well use C-A-F1. We also need to get rid of the confusing "Run XClients script" that is not going to help anybody.
I did this some time ago
I used to find the failsafe session very useful for things such as testing compiz, starting KDE4 or debugging gnome's startup process when it hangs. I'm sure other users of fedora-development have similar needs. Could we have the failsafe session back as a separate package?
You can just turn it back on in the gdm configuration.