Absolutely. I've been on Xubuntu (Ubuntu with XFCE) for several years, but I tried out stock Ubuntu on my netbook a few months ago — just to see the Unity desktop firsthand. This is a cheapo Dell netbook from 2009, 1024x600 resolution. Unity was so slow as to be completely unusable, and it took up precious screen real estate with a launcher bar I could not remove. It basically turned that netbook into a brick.
Now that I'm back to XFCE, with the panel set to auto-hide, I can hack with that laptop again, no problem.
I don't think you ought to need the latest and greatest machine just to run a responsive OS. XFCE is simple, fast, and gives you what you need with no unwelcome surprises.