I use KDE in dom0, it looks much better than XFCE and is imho much easier to use (type-ahead search in the start menu for starters). Also, contrary to XFCE, which is based on Gtk2, even the relatively old version shipped in dom0 has decent Hi-DPI support, as opposed to none at all in XFCE. The best gtk2 can do is scale in 100 % (!) steps.
Hi-DPI is still a bit cumbersome, especially if you switch between lo DPI and hi DPI (eg. builtin screen and external screen).
dom0 pretty much works out of the box. Some of the time the DPI has to be set explicitly and some stuff restarted (these can be easily entered in the Alt+F2 launcher):
xrandr --dpi 150 # or whatever kwin --replace kquitapp5 plasmashell plasmashell
This should give you A-OK scaling of everything in dom0. Panels might need manual resizing.
The DPI setting needs to be replicated into each app VM. Only newly started applications will be affected. (This seems mostly due to the relatively old software in F23 and Debian 8 VMs as well), eg.:
xrandr --dpi 150