Yes, Xfce I find works well. Just did not know how much effort you might be willing to put into it
Bit of advice - don't use "apt-get install xubuntu-desktop" to change to Xfce. That wants to install a ton of stuff that is not needed. Just try installing the the meta package "xfce4" and then add the other bits you want. I then removed the Unity desktop and it booted straight in to Xfce.
Edit: Actually, in this 12.04 image doing "apt-get install xubuntu-desktop" does not appear to be as bad. A previous image wanted to download 750Mb of stuff!
Edit2: Oh, and to get xfce loading instead of Unity, you need to edit /root/.vnx/xstartup and change the last line:
..then restart the linux chroot by typing exit