The backward compatible textmode feature may seem more useful to the DOSBox devs if more games are known to use it. I learned of a couple more games that use 350 scanlines with custom fonts: Labrynth of Zeux and MegaZeux. The former is a standalone side-view action/puzzle game, while the latter is a game-creation-system along the lines of Kroz and ZZT that still has an active community with ports to modern systems. These games use VGA features (palette stuff at least) and therefore work best with VGA, but they use 14-line fonts to maintain backward compatibility with EGA.
The games were originally shareware, but are now freeware. Community site: http://www.digitalmzx.net
@h-a-l-9000: your patch works OK with LoZ, but is causing MegaZeux to hang at startup. It is looking for bit 3 (vsync) of port 0x3da to show up, but it never does. The vsync appears to be used for a palette fade effect. I circumvented the hang with the DOSBox debugger, and the game seems to run fine after that. I tried the last DOS version by the original author (2.51), and the last community-made DOS version (2.70), and I suspect it's going to be the same for all versions. There is no hang (but the typical font glitches) without the patch. If you'd like to try it out, grab one of the DOS versions from the site noted above under the "MZX Versions" link.