Is it possible to disable opera turbo/compression on the desktop version?
Turbo is disabled by default, you enable/disable it by clicking on Menu > Opera Turbo.
Does turbo mode submit everything to opera's own servers?
Only non-secure traffic goes through Opera servers.
Update: I was able to fix this issue with some app/tool called "Windows 8 Font Changer", It changes font for caption, menus, etc.. So i picked a different font which is "Ubuntu" (I think "Calibri" or "Segoe UI" would work too) and now it looks as good as it used to be!