AFAIK with 5D2RGB you can apply the LUT while transcoding. Haven’t tried it since I don’t use the LUT (I grade every piece of footage individually in AE with curves, hue/saturation and levels or with Red Giants Colorista.)
Using the LUT while editing (at least with Premiere Pro which I use) is very processor heavy and for my taste, it slows down the editing process too much. But that may be just a problem with my computer.
When using the LUT you could try to apply it before (or while transcoding) so you can edit the pre-graded footage or – what works for me – I edit the ungraded footage and do all the grading afterwards in a second step. But that’s for sure a matter of taste.
What I’d try to avoid by any means is to show ungraded Technicolor Cinestyle footage to my clients. So if they want to see work-in-progress parts, the LUT (plus LUT Buddy or equivalent) is a cool and easy to use gadget to give a hint, what the final footage might look like…
Just my two cents.
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“Tragedy is a close-up; comedy, a long shot.” – Buster Keaton