I tried stock 16.04, and upstream xorg; no improvement.

What I've identified is: any xorg version that supports DRI3 shows a
performance regression even if only DRI2 is active. Enabling DRI3
worsens video performance and tearing.
xorg-lts-vivid is the latest version that will work flawlessly.

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https://bugs.launchpad.net/bugs/1610591

Title:
  Video acceleration regression for Radeon Xpress 200M (r300) in xorg-
  lts-xenial & xorg-lts-wily

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