I'm going to cross-post here what I just added to my thread about this on MacRumors:
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All right, I have an update. I went to play WoW on my Air for the first time in forever and was frowning because I wasn't able to get more than 20 FPS on even the very lowest settings — in the past I was able to pull a solid 60 under "Good," so this really ticked me off. After googling around I found a few references to people having poor GPU performance with, again, DisplayLink drivers installed even when they weren't doing anything that used them.
I was certain that I didn't have anything from DisplayLink on my computer but just to exhaust all possibilities I searched for directions on how to completely remove them and found this response from a DisplayLink employee:
http://www.displaylink.org/forum/showpost.php?p=4228&postcount=2
I'm not sure the uninstaller caused the issue, anyway if you want to manually remove the driver you must remove the /System/LibraryExtensions/DisplayLinkDriver.kext (you need to login in as root) and remove the following files: /Library/LaunchDeamons/com.displaylink.usblistener and /Library/LaunchAgents/com.displaylink.useragent.plist. In order to rebuild the kernel extension cache run the following command:
touch /System/Library/Extensions
I looked in those folders and sure enough, all three of them were on my system. I deleted them and ran the terminal command, rebooted and pulled WoW up: same "Good" settings as before and suddenly I was back to 60 FPS!
On a whim I figured I would test my other issue: knowing that clamshell mode at least for me worked fine following a reboot just as long as I didn't put the machine into sleep mode, I slept it, unplugged it from power, twiddled my fingers before turning it back on and closing the screen and... much to my shock, I got the rarely-seen blue screen flash and suddenly just the external monitor was outputting. The internal one was off. I was stunned. I spent 20 minutes attempting every possible permutation I could think of but without fail clamshell mode worked as it should under Lion — I could close the lid, I could wake it from sleep, I could lift the lid and close it again, etc. It always worked.
I will report back if anything changes but in the past it never failed that the first time I put the Air to sleep, clamshell mode stopped working until I did a reboot. I'm really, really, really hopeful that this fixes the problem completely because this has been driving me crazy since last year. If the bug returns I will come back and bump this, but for anyone else who's still having problems I'd suggest using the manual uninstall instructions I linked above. I have no clue how anything from DisplayLink got on my computer (the only guess I have is perhaps AirDisplay uses their drivers to some extent?) but for me so far that seems to have totally fixed the problem.