What version of qemu are you using? I have QEMU emulator version 2.6.0 (Debian 1:2.6+dfsg-3.1) currently. I made need to build another from source as mine doesn't find the machine type.
Adding the -vga-std flag did allow me to type in user this time, but still hangs upon entering pass.
Not a big deal honestly, as I am used to working solely in cli. The minimalist in me will likely scrap the Lubuntu bits anyway and add mmgen to a gentoo image.
The minipc thing is interesting as well. I was working with some guys on a pogoplug type box for this purpose though the insane memory requirements put a damper on it.
Did you install xserver-xorg-video-vesa in the guest?
You should be booting right into an autologged-in X session, the screen you see in my writeup above. If not, then something's wrong.
My host system is Ubuntu xenial, just like the boot image system:
$ qemu-system-x86_64 --version
QEMU emulator version 2.5.0 (Debian 1:2.5+dfsg-5ubuntu10.6), Copyright (c) 2003-2008 Fabrice Bellard
$ qemu-system-x86_64 --machine help
Supported machines are:
ubuntu Ubuntu 16.04 PC (i440FX + PIIX, 1996) (alias of pc-i440fx-xenial)
pc-i440fx-xenial Ubuntu 16.04 PC (i440FX + PIIX, 1996) (default)
pc-i440fx-wily Ubuntu 15.04 PC (i440FX + PIIX, 1996)
...
pc-q35-xenial Ubuntu 16.04 PC (Q35 + ICH9, 2009)
q35 Standard PC (Q35 + ICH9, 2009) (alias of pc-q35-2.5)
...
isapc ISA-only PC
none empty machine
xenfv Xen Fully-virtualized PC
xenpv Xen Para-virtualized PC
The Mini-PC's been up and online for about a week now, almost 24/7, without so much as a hiccup. I'm very satisfied so far. I'd been considering something more minimal, too, but having some experience running full nodes it became clear that Pogoplugs, Raspberry PIs, etc. just aren't up to the task anymore. MMGen on a Pi makes a good offline signing machine, but not an online node.