Just disabled compositing-manager and I can resize gnome-terminal and
gedit in my GNOME Flashback (Metacity) session on Ubuntu 16.04 with all
updated installed. Note that border is only 1px big at least with
Ambiance. So you need to place your cursor on that 1px border to get
resize cursor. This is reason why invisible borders was added. Or you
don't get resize cursor even on titlebar where this size is bigger?

Do you still have missing windows and/or titlebar problem? Have you
tried intel only mode?

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https://bugs.launchpad.net/bugs/1538111

Title:
  untraceable serious bug in metacity 3.18

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