I don't have a Kip device, so please help me understand exactly what's happening. Is it something like this?

a) Connect external display.
b) Close lid.
c) Hit Ctrl-Alt-F2 to switch to frecon.
d) Open lid.
e) Backlight is dimmer than it was at a).

If you don't switch to frecon, does the backlight return to the original brightness when you open the lid?

The feedback comment says that Chrome crashed. Does that happen every time you do this?

Looking at the logs from the feedback report, it seems like the system might've crashed when it suspended previously. powerd.PREVIOUS ends with:

...
[1013/115250:INFO:daemon.cc(1319)] Saw user activity
[1013/115252:INFO:daemon.cc(1180)] Got RequestSuspend message from :1.110
[1013/115252:INFO:suspender.cc(397)] Starting request 55246851
[1013/115252:INFO:daemon.cc(586)] Reading wakeup count from /sys/power/wakeup_count
[1013/115252:INFO:daemon.cc(590)] Read wakeup count 1346
[1013/115252:INFO:internal_backlight_controller.cc(686)] Setting resume brightness to 1948 (52.6%)
[1013/115252:INFO:suspend_delay_controller.cc(139)] Announcing suspend request 55246851 with 2 pending delay(s) and 0 outstanding delay(s) from previous request
[1013/115252:INFO:suspend_delay_controller.cc(88)] Got notification that delay 55246849 (shill) is ready for suspend request 55246851 from :1.9
[1013/115252:INFO:daemon.cc(1337)] Chrome is using presentation display mode
[1013/115252:INFO:suspend_delay_controller.cc(88)] Got notification that delay 55246850 (chrome) is ready for suspend request 55246851 from :1.11
[1013/115252:INFO:suspend_delay_controller.cc(224)] Notifying observers that suspend is ready
[1013/115252:INFO:suspender.cc(466)] Starting suspend
[1013/115252:INFO:main.cc(259)] Running "/usr/bin/powerd_setuid_helper --action=suspend  --suspend_wakeup_count_valid --suspend_wakeup_count=1346"

----

powerd.LATEST starts a few minutes later; presumably the system booted again when you opened the lid:

[1013/115418:INFO:main.cc(310)] vcsid 0.0.2-r1556-b125db902c30359ac43ca15d1a1c2f921c31c564
[1013/115418:INFO:udev.cc(82)] Watching FD 14 for udev events
[1013/115418:INFO:input_watcher.cc(431)] Watching power button: /dev/input/event7
[1013/115418:INFO:input_watcher.cc(431)] Watching power button: /dev/input/event6
[1013/115418:INFO:input_watcher.cc(431)] Watching power button: /dev/input/event4
[1013/115418:INFO:input_watcher.cc(431)] Watching power button: /dev/input/event1
[1013/115418:INFO:input_watcher.cc(443)] Watching lid switch: /dev/input/event0
...

----

It looks like you closed the lid again after that, though, so presumably that's what this report is about:

...
[1013/115418:INFO:internal_backlight_controller.cc(670)] Setting brightness to 1948 (52.6%) over 2000 ms
...
[1013/115431:INFO:daemon.cc(484)] Lid closed
[1013/115431:INFO:wakeup_controller.cc(166)] Un-inhibiting /sys/devices/pci0000:00/0000:00:14.0/usb1/1-2/1-2.1/1-2.1:1.0/input/input6
[1013/115431:INFO:wakeup_controller.cc(166)] Un-inhibiting /sys/devices/pci0000:00/0000:00:14.0/usb1/1-2/1-2.1/1-2.1:1.1/input/input7
[1013/115431:INFO:wakeup_controller.cc(166)] Un-inhibiting /sys/devices/pci0000:00/0000:00:14.0/usb1/1-2/1-2.2/1-2.2:1.0/input/input8
[1013/115431:INFO:wakeup_controller.cc(166)] Inhibiting /sys/devices/platform/80860F41:00/i2c-0/0-0015/input/input5
[1013/115431:INFO:wakeup_controller.cc(166)] Inhibiting /sys/devices/platform/i8042/serio0/input/input4
[1013/115431:INFO:wakeup_controller.cc(153)] Enabling wakeup for /sys/devices/pci0000:00/0000:00:14.0/usb1/1-2/1-2.1/1-2.1:1.0/input/input6 through /sys/devices/pci0000:00/0000:00:14.0/usb1/1-2/1-2.1
[1013/115431:INFO:wakeup_controller.cc(153)] Enabling wakeup for /sys/devices/pci0000:00/0000:00:14.0/usb1/1-2/1-2.1/1-2.1:1.1/input/input7 through /sys/devices/pci0000:00/0000:00:14.0/usb1/1-2/1-2.1
[1013/115431:INFO:wakeup_controller.cc(153)] Enabling wakeup for /sys/devices/pci0000:00/0000:00:14.0/usb1/1-2/1-2.2/1-2.2:1.0/input/input8 through /sys/devices/pci0000:00/0000:00:14.0/usb1/1-2/1-2.2
[1013/115431:INFO:wakeup_controller.cc(153)] Disabling wakeup for /sys/devices/platform/80860F41:00/i2c-0/0-0015/input/input5 through /sys/devices/platform/80860F41:00/i2c-0/0-0015
[1013/115431:INFO:wakeup_controller.cc(153)] Disabling wakeup for /sys/devices/platform/i8042/serio0/input/input4 through /sys/devices/platform/i8042/serio0
[1013/115431:INFO:state_controller.cc(846)] Turning panel off after entering docked mode
[1013/115431:INFO:display_power_setter.cc(80)] Asking Chrome to turn internal display off and external displays on
[1013/115431:INFO:internal_backlight_controller.cc(670)] Setting brightness to 0 (0%) over 0 ms
[1013/115431:INFO:state_controller.cc(889)] Ready to perform lid-closed action (no-op)
[1013/115432:INFO:audio_client.cc(127)] Updated audio devices: headphones unplugged, HDMI active
[1013/115438:INFO:daemon.cc(493)] Lid opened
[1013/115438:INFO:state_controller.cc(846)] Turning panel on after leaving docked mode
[1013/115438:INFO:display_power_setter.cc(80)] Asking Chrome to turn all displays on
[1013/115438:INFO:internal_backlight_controller.cc(670)] Setting brightness to 1948 (52.6%) over 0 ms
[1013/115438:INFO:wakeup_controller.cc(166)] Un-inhibiting /sys/devices/pci0000:00/0000:00:14.0/usb1/1-2/1-2.1/1-2.1:1.0/input/input6
[1013/115438:INFO:wakeup_controller.cc(166)] Un-inhibiting /sys/devices/pci0000:00/0000:00:14.0/usb1/1-2/1-2.1/1-2.1:1.1/input/input7
[1013/115438:INFO:wakeup_controller.cc(166)] Un-inhibiting /sys/devices/pci0000:00/0000:00:14.0/usb1/1-2/1-2.2/1-2.2:1.0/input/input8
[1013/115438:INFO:wakeup_controller.cc(166)] Un-inhibiting /sys/devices/platform/80860F41:00/i2c-0/0-0015/input/input5
[1013/115438:INFO:wakeup_controller.cc(166)] Un-inhibiting /sys/devices/platform/i8042/serio0/input/input4
[1013/115438:INFO:wakeup_controller.cc(153)] Enabling wakeup for /sys/devices/pci0000:00/0000:00:14.0/usb1/1-2/1-2.1/1-2.1:1.0/input/input6 through /sys/devices/pci0000:00/0000:00:14.0/usb1/1-2/1-2.1
[1013/115438:INFO:wakeup_controller.cc(153)] Enabling wakeup for /sys/devices/pci0000:00/0000:00:14.0/usb1/1-2/1-2.1/1-2.1:1.1/input/input7 through /sys/devices/pci0000:00/0000:00:14.0/usb1/1-2/1-2.1
[1013/115438:INFO:wakeup_controller.cc(153)] Enabling wakeup for /sys/devices/pci0000:00/0000:00:14.0/usb1/1-2/1-2.2/1-2.2:1.0/input/input8 through /sys/devices/pci0000:00/0000:00:14.0/usb1/1-2/1-2.2
[1013/115438:INFO:wakeup_controller.cc(153)] Enabling wakeup for /sys/devices/platform/80860F41:00/i2c-0/0-0015/input/input5 through /sys/devices/platform/80860F41:00/i2c-0/0-0015
[1013/115438:INFO:wakeup_controller.cc(153)] Enabling wakeup for /sys/devices/platform/i8042/serio0/input/input4 through /sys/devices/platform/i8042/serio0
[1013/115438:INFO:audio_client.cc(127)] Updated audio devices: headphones unplugged, HDMI inactive
[1013/115441:INFO:daemon.cc(1319)] Saw user activity
[1013/115441:INFO:daemon.cc(1319)] Saw user activity
....

----

powerd appears to have tried to restore the original brightness (1948) after exiting docked mode.

 - If you don't switch to frecon, does the backlight return to the original brightness when you open the lid? 
Without switching to VT2, the backlight does not change. You get this issue ONLY when you exit docked mode(open the lid) when in VT2 view on the external monitor.

 - The feedback comment says that Chrome crashed. Does that happen every time you do this?
No, it does not. Following reproduction did not get the browser crash effect.

Thanks. Probably not P1 then, since this should only appear when in dev mode and additionally using VT2, and because it has an easy workaround.

Frecon does not control backlight. It should be up to power manager.
Frecon does notify power manager when there is keyboard activity so it should keep brightness up when there is some activity.

Looks like Chrome is doing some things at resume like trying to turn displays off/on which it probably will not be able to do because it does not have DRM master because frecon is in control. Maybe this causes some Chrome crashes?

If you can still repro this, please file another feedback report immediately after triggering to help determine if the earlier Chrome crash is related.

Re #6, we're not actually suspending/resuming here (we're going into docked mode since an external display is connected), but that's a good point that Chrome is unable to do the display-related stuff that powerd asks it to since frecon is DRM-Master.

I don't know what the right fix is if that's the case. Maybe Chrome should queue the configuration request until it's in charge again. I dread making DisplayConfigurator even more complicated for something like this, though.