We're dealing with a few issues here. First, about the factory reset after an upgrade ... Android 5 (lollipop) is very much changed from 4.4 (Kit Kat) down to the way it run the apps. Java apps in earlier versions were compiled and run in a Dalvik virtual machine. They are now run in ART (Android Run Time) VM. When you upgraded from 4.4 to 5.0 everything was supposed to switch over, but the previous Dalvik cache seems to cause performance and stability problems for some people. The quickest way to get rid of that on a stock installation is to perform a factory reset. A factory reset is NOT like reinstalling the OS, however. What it does is simply clear the user data and settings from the system partition and wipe the respective caches (system app cache and Dalvik cache). For most people who aren't rooted, this is pretty darn close to "out-of-the-box" but if you've updated the system to a later version it does not roll back. You will still be at the latest version. If something happened to the system files during the upgrade, a factory reset won't fix it. You'd have to re-flash the factory firmware (which IS a system re-install).
From what I've read, Lollipop is not supposed to require any more resources than Kit Kat, but is capable of taking advantage of higher powered devices that are coming out now. If you have an app (or game) that performed well on Kit Kat, but not on Lollipop, it could be the Dalvik cache getting in the way (which a reset will fix) or it could be that the apps haven't yet been optimized for Lollipop.
Also, one of the complaints about Lollipop has been the camera app. It isn't Google's highest achievement
. You might want to look at a few of the alternate camera apps in the play store and see if one of them performs better for you.
From what I've read, Lollipop is not supposed to require any more resources than Kit Kat, but is capable of taking advantage of higher powered devices that are coming out now. If you have an app (or game) that performed well on Kit Kat, but not on Lollipop, it could be the Dalvik cache getting in the way (which a reset will fix) or it could be that the apps haven't yet been optimized for Lollipop.
Also, one of the complaints about Lollipop has been the camera app. It isn't Google's highest achievement
. You might want to look at a few of the alternate camera apps in the play store and see if one of them performs better for you.

Back in the day, dumb-phones were very easy, they only did phone calls, sent messages, and played snake.