I was thinking about going back to stock for the update, but that definitely sounds like too much of a hassle now. I will definitely be waiting for a flashable one now.
I could be grossly misinterpreting what I have been reading, but it seems like there won't really be a flashable upgrade this time around. And by "flashable" I am assuming you are referring to the one .zip packages you simply load in custom recovery with a stock/rooted/custom recovery enabled phone. Every indication from posts from people that are running 5.0 now are pretty much from those who used the factory image. Not that there is anything wrong with that...I thought about using that method this time around, it doesn't scare me at all as I'm quite familiar with ADB...however, I just don't like how at the time that I write this...it specifically mentions to use Chainfire autoroot. (there are instructions also posted about 5.0 rooting that do not use chainfire autoroot, but from my prior experience I've learned to be patient and wait for an updated, revised instructions that has plenty of feedback...and my number one rule is do not combine methods)
But hey, that's just me. I'm the kind of person who only shows up on the forums anymore whenever there's a new update...
Edit to this...I saw this post...
http://xdaforums.com/google-nexus-5/help/updating-to-l-stock-root-t2938049
and decided to give it a whirl. I do see that Bedon292 has mentioned in the dev preview thread a TWRP flashable upgrade is being worked on. Which makes me laugh, because since I alluded to my having patience before...I am probably jinxing myself into having a problem.
And yes...you will lose root if you do this. Obviously, because the system.img is rooted...but getting root and custom recovery back only takes a minute.
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