I've been aware people having this problem but haven't really looked into it until now.
Turns out the solution is to edit /home/dsl/.xserverrc and change it from
CODE
exec /usr/bin/X11/Xfbdev -dpi 200 -mouse /dev/input/mice,8 -nolisten tcp -I &>/dev/null
to
CODE
exec /usr/bin/X11/Xfbdev -mouse /dev/input/mice,8 -nolisten tcp -I &>/dev/null
Why is that -dpi option there? Well the originally the fonts were too small in most X-DSL apps so I added it to try and increase their size. It didn't seem to have any effect so I forgot about this change and altered the fonts in each application's configuration file. While this option didn't effect most X-DSL apps I guess it does effect gtk2.0 apps which is why the fonts are so big.