Why isn't my iPhone 5c working to it's full potential?

I am currently using iOS 8.1.1 on my iPhone 5c. I have had the phone since last Christmas (December 2013) so it is almost a year old. In the last few weeks, I have been having some issues with my iPhone that I know should not be an issue on a fairly new phone.
Problem 1: I have a pending software update for iOS 8.1.2 which Apple is telling me I do not have enough storage to download. I am finding it hard to understand this as I have removed all of my photographs from my iPhone in order to make room for it, and I also only have a very small number of apps (15). I have 100 contacts on my phone which is the only thing I can think of that may be taking up too much storage. I do not understand why I can't download the update, and I also don't understand why it even takes up that much storage on my phone anyway? Surely the update should not take any storage of what I am actually paying for? Maybe I am just short of knowledge about Apple and how it all works, as I don't really understand the whole thing anyway.
Problem 2: I am not sure whether this is a problem with the device or with my contract but when I leave a place where I have been using wifi, my phone does not use it's 3G. In my contract with EE, I pay for unlimited 3G however, when my mobile data is switched on, and also enabling 4G, I am not able to use the internet. At the top of the screen where the symbol for 3G usually appears, there is nothing. I have to switch my device off and then back on to make it work. Does anyone know why this is?
Problem 3: My Wi-Fi symbol keeps appearing in a pale grey colour. It does not allow me to switch the Wi-Fi on and on the swipe up box the Wi-Fi symbol is appearing dark and I am not able to switch it on. This is very frustrating for me as I do not have signal in my home so I rely on the Wi-Fi, yet I have not been able to use it for 2 days now. It has happened before to me also but switching the device off and back on again seemed to work. I have tried all 'home remedies' to try to solve this problem, I have switched off the Wi-Fi box from the wall at my house and put it back on - nothing. I have switched my phone off and on several times - still nothing. I have also reset the network settings on my phone - nothing. I have tried putting Airplane Mode on, then turning it off but the Wi-Fi symbol still remains dark grey and I am unable to switch it on.

Your issue is different from the OP's.  In the future, post your own thread to get answer to your specific questions.
For the OP: Go to Settings > General > Auto-Lock and set it to your preferred time.
For you: Create a backup and restore the device as new and test it to see if it still gets very hot.

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