Some of the things they did off the top of my head:
* Render extension. This enabled all sorts of things, like easier drawing and scaling of pixmaps, or better font handling.
* Less monolithic build, phase out imake. This allowed iterating various components at different rates.
* Better auto configuration - less need to write a config file for the most common configurations.
XCB was also a good idea. I don't think it lived up to full potential because interest in writing code for X waned.
I think one thing that was lost to history are some of the proprietary X servers, such as those by Sun and SGI. The XFree86/Xorg lineage is missing their input.
Better until you compile a new kernel and realize that you don't have keyboard and mouse in X because it insists using an obscure (event ?) interface. And then press the power button to restart.
The xorg people phylosophy seems to be: if it works, fix it. Since xorg forked XFree86 the quality has gone down.