At the moment editview spits out an empty row (as in an empty views row div for the row is included in the rendered View) in a View for each node that the user has view permission but not edit/update permission for.

It's relatively easy to change editview to include the node with the standard, non-editable rendering of each field. I've done this on top of a couple of other changes (#635076: Allow read-only display of fields and #586142: Ajax Node add/submit) and don't have time to write a separate patch, but the first patch above modifies theme_editview_node_form to get us halfway there, the other main change is to move the line "if (isset($node->nid) && node_access('update', $node) || !isset($node->nid) && node_access('create', $type))" in template_preprocess_editview_view_row_node_edit (which at the moment simply hides the node completely if there's no edit permission) to theme_editview_node_form to determine whether to render a field as a form element or the standard field value.