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For me it only really happens when I'm playing graphics intensive games, streaming movies, and browsing the web with bad HSPA reception. I wonder if Google or LG would introduce some sort of firmware to help the overheating. I know that LG has had a few phones that had overheating problems (the LG Connect for example) and they fixed the problem with a firmware update later on. Maybe if enough people contact Google about it they'll do something.
Its due to thermal throttling LG Nexus 4 issues found before release » Phone Reviews
I always figured it was because the glass backing will transfer the heat to your hands so much easier.
my portable heater