Xposed Framework for Nexus 5....

I was reading and responding to technofu's post on what to do with a Red Nexus 5. I've had my N5 for 3 months now, and I've been very happy with it. But I want to branch out and explore more, see what it can really do. I'm not very interested in an alternate ROM, but there's a growing chorus of praise for the Xposed framework and what it allows you to do. I have some questions before taking the plunge, though, and wanted to ask them here instead of wading into XDA right away. Sometimes minor points are buried very deep there.

As I understand it, I'll need to only root my phone. I won't need a custom recovery, bootloader access, and no flashing. Am I correct in thinking this?

Since I'm only rooting, and rooting is so easy to reverse, will this affect my warranty?

Lastly, suggestions for what I should change on my phone. Hit me with what you think are the first things I should do. For stuff like the Franco Kernel, I'm worried about stability issues. Should I be?

Also, screenshots of the UI changes you've made would be nice.

Thanks for all the help!