Think about it: how many pieces of software design have remained in heavy use worldwide for 30 years. The fact that no one bothered to replace it in all that time is proof enough that whatever warts it has can't be that painful. (Now, finally, it seems like it's going to happen with Wayland, but it's not there yet.)
Not only that, but computer display technology has changed massively over X's lifetime. I'm writing this in a composited window manager hardware accelerated via natively-3D hardware outputting to multiple monitors of different resolutions over as many different digital display links. How much of this was even imagined in the 1980s? Yet the X protocol via it's extension mechanisms has proven adaptable enough to take in massive changes in the technology, and still keeps on ticking.