You have to switch off development releases to get 2.0.
That's pretty backwards.
Where does this option exist? I've been going through Preferences and every other menu I could think of but could not find it.
It's labeled "Prompt for test-release updates" on the General tab.
Preferences > General Tab > Services Group > "Prompt for test-release updates"
Thank you! Most valuable comment in this thread.
Aside: Check For Update... still gives 1.0.0.20140629 as the latest version. Have to download a 2.0 build explicitly.
http://www.iterm2.com/downloads.html