You just make sure that the xorg-xauth and xorg-xinit packages are installed, and put this in your ~/.profile:
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if [ -z "$DISPLAY" ] && [ $(tty) == /dev/tty1 ]; then
exec startx &> /dev/null
fi
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if the X server is not running and the virtual terminal is tty1 then
replace the shell process with X, and send the output to /dev/null
The benefits are fairly obvious; because some bloaty display manager isn't being loaded, you get faster boot times and less RAM usage. Not sure about the security though, using XDM might technically be more secure for work situations.
NB: if you have applications that make use of ConsoleKit, you may have to set your .xinitrc to launch it. Just replace
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exec $WINDOWMANAGER
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ck-launch-session $WINDOWMANAGER