Failure to load the font also causes a block of config code to be omitted, in my case this is:
if loadfont $font ; then set gfxmode=1024x768 load_video insmod gfxterm set locale_dir=$prefix/locale set lang=en_GB insmod gettext fiwhich has a more serious effect - the gfxmode is not set, and if you have a high resolution screen, the grub menu becomes too small to read.
Ralph Martin