Played around a bit with xorg and kernel options on my G5 and worked out that I can drive the Radeon 9650 at AGP x8 if I disable DRI completely via Option "NoAccel" "true" in /etc/xorg.conf. I had no GPU-lockups since then and xorg is much more responsive despite lacking DRI hardware acceleration (radeon.agpmode=-1 with DRI enabled).