Try using Knoppix 6.01/6.1 with LXDE.
That release has got the best graphics autodetection/initialization I've ever encountered. It is not so good in 6.2.

And please relate to specific releases. RE your sweeping generalizations: I have the exact opposite experience. And, as Harry said, DSL is rather dated, and nothing to judge from.
A lot of issues remain before Linux really is ready for prime time, but your concerns do not seem to be among them - from my experience.