Comment 44 for bug 761830

It looks like this gets added automatically if the splash option is specified in /etc/default/grub. It appears this option is there by default, but is removed at some point when installing from the server cd. However that happens on the server probably needs to behave the same on the alternate cd when you don't choose to install the desktop.

I'm sure this bug is low priority because it is very uncommon to install with the alternate desktop installer, and then not install the desktop, hence, there are more important problems to spend limited time fixing.