I've posted about my recent dissatisfaction with Android before. I've rooted, used ROMs, Xposed, the whole spectrum. I kept chasing the "ideal" scenario, being able to customize what I want while still maintaining stability and security. I realized ROMs were never going to be that, too transient, too beta, so I gave them up for good. Xposed + stock is pretty close to what I was shooting for all that time, but it's still far from ideal. There is very little security with Xposed modules and root apps in general...you're running a risk every time you install something new. It requires effort to do simple things, like control your privacy (XPrivacy/AppOps) or keep battery life in line (Greenify). Why at this point in Android's maturity do we still need to hack such basic functionality? The lock screen is still a mess. No one wants widgets there, they simply want to see their notifications. App quality is still not where it needs to be especially on tablets.
I can agree fully with the OP that I also dread new updates. This pattern has played out over and over recently with app updates. They tweak the design for no reason, no improvement in user experience, and features only stay the same or get worse. I thought we were finally settled in a good UI paradigm with 4.0/4.1, but they want to continually reinvent the wheel. Their priorities aren't in order...they're more worried about fitness tracking and making a dumb watch or glasses than fixing core incompetencies in their bread and butter mobile OS. They aren't focusing on the things I and many others care about and instead just keep making new unpolished things, never finishing or perfecting their past projects. The bugs never end and new ones are always cropping up. Do they think anyone is actually using new features in G+ and Google Now, when they show up out of nowhere and without announcement? No one even knows about them. The Hangouts/Voice integration is still not done, what an insult to their users.
There were a lot of issues with the Nexus 5, and there isn't enough compelling reason to spend the same price on an Android phone as an iPhone - you're simply getting worse hardware and user experience, almost without question. Battery life, camera quality, durability, you name it, a high-end Android phone just isn't worth the same price as an iPhone (not that an iPhone is necessarily worth that price either). The average user is only using Android because it's cheaper or has a bigger screen, not because it's better - this should worry Google. Now that my frustration has reached this point, and that the iPhone will finally be released in bigger sizes this fall, I've determined that the extra money will be worth the better experience and saving myself the time and frustration, and will probably switch. I'll still pay attention to I/O next week, but I expect nothing that will excite me. Even the good news will come with caveats, questions, delays, and bugs.
I enjoy my lockscreen widgets. I have Dashclock, a flashlight, and Google's sound search.
If I cared more about all my notifications (not just what Dashclock can show me), I'd install something like AcDisplay. Privacy is funny, on a Google platform. I don't have any weirdly high expectations on what's happening with my information, but I also don't install crapware that is obviously selling my details. Google uses my information, they don't sell it to third parties. I don't need to keep the battery in line, 4.4 does that just fine.
And then there's the fact that you believe the iPhone costs more money. It doesn't. Sure, compared to the Nexus 5, but nearly all flagship phones do. But your argument that the extra money isn't worth it due to inferior hardware is wrong. The hardware in an M8 or S5 or Z2 is, in fact, superior. That's the SoC, GPU and camera. Saying it's inferior is simply not a true statement. Cameras in phones like the Z2 and S5 rival and even surpass that of the iPhone, and it was true with last year's models as well. You're also conveniently forgetting that software isn't an issue if you buy GPe, or Silver when it becomes available.
The fact that you would just switch to iPhone puts your statements about ROM flashing and complete customization in a weird position. How much do you actually care about making things the way you want them? Or is it simply that you just want more switches and toggles? If the former, enjoy ripping your hair out within 2 weeks of owning an iPhone. If the latter, it's quite likely you'll find the lack of freedom liberating in the sense that you don't have to care about every facet of your device now that you've given control to Apple.
Which raises other interesting questions like how are you okay with handing all control over to Apple, but you never stated that you tried that with Google? Even with iOS 8 looming, Android is still a far more flexible OS, and that's without dealing with root.
I rooted and ROM'd the crap out of my GNex. Firstly because Verizon sucks. Secondly, there were a lot of genuinely nice features that required a custom ROM. These days, almost every one of those features I crack flashed for is available as an app, and you don't even need root. My Nexus 5 is still stock, I haven't even unlocked it. I still run a ton of apps to customize my phone, and I'm satisfied. Action Launcher, Link Bubble, Dashclock, Tasker, etc. They give me what I want.
Which leads to the last beef with your statements. You assumed that your tastes applied to everyone, or at least the vast majority of users. They don't. Not in the least. I love my lockscreen widgets, I am eagerly awaiting the next evolution of Android, and I feel like it's never been in a better place both from a design and functionality standpoint. There have been other people in this thread that are excited for the direction Android is going.
It's fine that you're not excited. Just don't use false and out-dated arguments to support your opinion. Especially the iPhone costing more one. With the amount of M7's, M8's, S4's and S5's I see every day, it's not because of cost. It's a genuine preference.