I spoke with upstream about this, and confirmed that the option is gone.
Regarding the performance regression, they're not so interested in
performance reports for 2.3 -> 2.4.  They'd be interested in hearing
about performance issues from 2.3 to 2.5, however we don't have a test
package for that at this time.
If you do get a chance to test 2.5 and find there to still be a
measurable performance regression, please file a new bug and let me
know.

** Changed in: xserver-xorg-video-intel (Ubuntu)
       Status: Triaged => Won't Fix

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INTEL_BATCH=1 not implemented in Intrepid ?
https://bugs.launchpad.net/bugs/284082
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