I tried the last two Lakka nightlies. The problem is that when I dd the img file to the microSD, and try to edit config.txt that the file is binary instead of ASCII. This was not the case with older nightlies.
$ file *.txt cmdline.txt: ASCII text config.txt: data distroconfig.txt: data
I need to edit config.txt as my display will not work with the default HDMI power level of the Pi (I need at least config_hdmi_boost=4). Otherwise the display will simply claim there is nothing detected and switch itself off.