Thanks for all the replies guys. Unfortunately the suggestions above that said to factory reset, tried it, didnt work. And to @nessinhaw, there is absolutely no way to revert back to JB without erasing the files. You dont require a root, but you need to flash the rom.
Anyway long story short, after I wrote here I started on rooting. Spent the last countless hours doing it so I thought I'd share how I did it. Note that before today I was a novice, now I'm a self declared pro!
I started off by finding stock firmware for android JB 4.3. Found it. Unlocked the bootloader from motorola website. Downloaded ADB from google's android site. Installed moto G device drivers. Flashed the rom and got JB on. Worked.
Then I proceeded to root the phone, after banging my head for quite a while managed to install SuperSU. Worked.
Oh by the way while I was getting unlock code from motorola site the warning actaully said something on the lines of 'we are not responsible for personal injury caused by unlocking'. Found a couple of threads where other people had noticed it too.
Anyway was stuck with this ugly notification or warning when I switched on the phone which said the bootloader is unlocked. I managed to replace it with a nifty 'motorola dual core technology' logo.
Installed AppOps, worked.
Installed Titanium backup, worked.
Coming to titanium backup, I managed to FREEZE the MotorolaOTA 1.0 which was giving the annoying notifications for updates. The update notification is gone forever, it is literally frozen and disabled and shows in androids own settings too!
After a couple of backflips and tripleflips I then proceeded to install Real Racing 3, the app I bought this phone for, the app I use this phone 99.9999% of the times for. It worked, no delay, no sound lag.
With a big grin, I then installed a lockscreen which would enable me to launch my favourite apps. I had this annoying problem before, well most of you do but you probably dont take notice, that when you turn on the camera to record, if you close the flip (magnetic) of the original motorola flip shell, since its magnetic, it would shut down the camera and lock the phone. I downloaded an app which would run despite being closed, and has no weird special permissions. Something I wanted to do for a long time, done.
USB MTP problem, fixed, completely. SDrescan runs. MDScan runs.
Oh yes, the call recording app runs too.
All these things i mentioned above, with kitkat, they wouldnt run, no matter what i would do, they wouldnt perform. But the last nail in the coffin was when real racing 3 stopped working with kitkat. I was like thats it, no way are they going to take RR3 from me.
I know my warranty is void now since I've rooted it, and theoretically I can get viruses, but the way android system works, if you are careful with what apps you install, you can literally never get a virus. The thing is I feel so much comfortable with appops, that if I download a pesky game like angry birds it wouldnt have my camera on while I'm in the loo or something. So really although they give the impression that the phone is without warranty now and might get viruses, in fact what good is that warranty if the basic apps you need, or well I need, are not running after a supposed upgrade which was more like a downgrade really.
Quite honestly its like a special feeling. I feel that the phone now belongs to me. I know I cant send it for repairs if anything goes wrong now, but to be honest if I had lived with those limitations I would have always been unsatisfied. This reminds me of those new laptops windows 8 ones that have auto updates on and those updates would take ages to compelete after every shutdown and compare it to my win 7 machine that is never updated and has been running for 3 yrs without a virus or a lag of any sort. Say no to updates thats what I say. If it aint broken dont fix it.
I first unlocked the bootloader here:
https://motorola-global-portal.cust...e/bootloader/unlock-your-device-a/action/auth
This is a very important step.
Apparently for nexus phones google offers firmware right on their site. Soon to come for moto g as well. I downloaded the uk retail 4.3. I downloaded mine from here
Motorola Firmwares
Followed guide to restore to stock firmware here on xda-developers
[GUIDE] Moto G - Restore stock firmware - xda-developers
For a while thought of installed cyanogenmod but decided against it as I reckoned it might be an overkill and the stock firmware would fulfill my needs just fine.
For rooting I followed this guide
[How To] Root Motorola Moto G Using Modified Recovery Method
and actaully this guide
Root your Moto G - option 2: Modified recovery - Motorola Moto G - MoDaCo for modifed recovery method as that worked for me.
however towards the end while sideloading i ran into a problem that the pc wouldnt read the android while in bootloader. post by @rhymiz in comments here
How to manually update your Nexus tablet to KitKat [updated] | Android Central helped me.
ill paste it here:
For those that have that receive device not found with ADB trying to sideload the update, I've found a fix for that. (Windows 8, I don't know if this works on Windows 7, but try it and let me know.)
Steps: Install the drivers that come with your SDK or download them here:
Google USB Driver | Android Developers
Get your device ready to receive update from ADB, then right click on "Computer", Select Properties then device manager.
You should see your Nexus show up with a triangle, indicating that drivers have not been installed. Right click on Nexus 7 or which ever Nexus you have, click properties, select update driver, browse my computer for driver software, then click on let me pick from a list..., a Window will pop up with where you can select your device type, select ADB Interface, then click next, you'll be taken to a screen where you can select a Model, click on ADB Interface (or ADB Testing Interface), click next, you'll get a warning message from Windows, click yes anyway and your driver will be installed.
Test it by opening a shell and typing "adb get-serialno", you should see your Nexus' serial number.
I also got stuck in bootloader and post 5 helped me here
[Q] Stuck in Fastboot - xda-developers
I removed the bootloaded warning logo by following guide here
[HOWTO] Remove The Unlocked Bootloader Warning logo - xda-developers
I removed system update notifications for **itkat using guide here
[Q] How to disable firmwar update notifications on Moto G ? - xda-developers basically with root access of titanium backup by freezing motorolaOTA 1.0.
Also worth mentioning this video that helped me initially.
https://www.youtube.com/watch?v=9TOoXod_rv0
I LOVE my moto G now!
I can finally use my phone now, I feel proud of it. BTW came across this interesting video where a lady puts the moto g for 30 mins underwater
https://www.youtube.com/watch?v=IVaTKG5q4YI
By the way i used to use My Backup Pro, and tommorow i intend to restore some of the apps data back onto the phone. So if any of you plan to follow this, make sure you got backups!
P.S I forgot to mention that motorola website said something on lines of warranty not being void if its a developer edition of moto g, whatever that is. I'm not sure if mine is one, and i dont care, but the point I wanted to get across was that motorola themselves sort of encourage you to play around with the phone if you want to develop or something. In fact I came across some article about them making everything out in the open soon to help folks who want to flash stock firmware like you can on nexus. Have a read of this
http://motorola-blog.blogspot.co.uk/2013/11/you-asked-we-listened-announcing.html