Both phones are great! I would advise you S5, so far no serious problems with mine. I trust more Samsung then LG in the way of quality. I've been using iPhone, BlackBerry,... But love my S5 most...
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I had the same problem as you have and then I reinstalled the case. It has to fit tight to work otherwise the phone will not recognise it.
If it still doesn't work take it back to the store.
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No lags here I was surprised about that, because I had galaxy S (totally different story) and all I can say Samsung has done a great job since then. I think it's very much connected to user preferences... Check the power saving mode there is an option to limit CPU.
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