Original Partitions and Still Running Version 4.1.1

[Kamchak]

I'm in the US, and I have a Cincinnati Bell HTC One S that I've had for about 18 months. I play games and use apps on the phone, very rarely use it for pictures(10 max before I move them to my desktop), and never for music. I started having issues with games, and the game help desk said I needed to install the new andriod update. The phone says it is version 4.1.1, 3.14.422.11 710RD, and when I try to do a manual update, it says there is no update available. I started looking online, rather than through Cincinnati Bell, and I see that a version 4.1.2 version came out for my phone last summer, and many people are even running KitKat (vers 4.4?). I also noticed that my phone is set with 6.07GB for Internal Storage, and 9.93GB of Phone Storage.

Would my phone be performing better with an updated version?
Since I don't really use any storage for movies, music, or pictures, is there a way to re-allocate the storage so I have more room for apps?
Since I don't really use any storage for movies, music, or pictures, is there a way to get rid of the apps related to them? (Google Play Books, Google Play Music, Google Play Newsstand, Google Text-to-Speech Engine, SoundHound)