Nexus 4 Not Supported In AOSP For Now
We have some bad news for you early Nexus 4 adopters: It isn’t supported in AOSP. JBQ has said that the “Nexus 4 is not supported in AOSP at the moment: no source files, no binaries.” Considering it’s a Nexus device, this is extremely disappointing. The Nexus 4 joins the Nexus 7 3G in not being supported by AOSP, making this launch far from flawless. However, a reason was given for the N7′s absence: Google has not been able to license the GSM stack for AOSP yet.
JBQ has not commented on what the reason is for the N4 not being supported, but it’s probably some sort of licensing too. I wish Google had gotten it out of the way early on, though it might have been out of their control. So I guess we’ll just have to wait.

It has nothing to do with updates, but it is a massive problem if the source code is not released because then Custom ROM development etc will be much more difficult and possibly impossible. One of the whole reasons behind owning a Nexus device is to have the option to customize your ROM and Kernel, a world of modifying that is often much more difficult with non-Nexus devices. Take this away, and the Nexus almost falls into the same category as every other Android phone, except that it will still have vanilla android. Vanilla android is great, but lacks many many many features that custom ROM's offer.
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