I wonder when I get Lollipop is it a good Idea to do a factory reset and if so does Loillpop actually back up your data, layout etc like iOS cloud service does?
Only what you tell it to back up, and you can't back up everything without additional apps. If you wait for the official OTA update, though, you shouldn't have to do a reset, just clear the system cache (which doesn't lose any data).