[MERGE][Bug #50582] Pushing into a local no-trees repo no longer creates a working tree

[Robert Collins]

Robert Collins has voted approve.
Status is now: Conditionally approved
Comment:
I agree with all John's comments. I think there is already a test for 
the if branch he talks about - those functions are quite heavily 
exercised.

For details, see: 
http://bundlebuggy.aaronbentley.com/request/%3C20071114131006.4bf2b3da%40lapbert%3E