That’s true, I think, but the point of doing a factory reset means that any cruft that’s accumulated over a series of updates, both OS and app, will be completely cleaned out, so it should run quicker and smoother.
Doing the same thing to desktop machines is often advised, because data gets fragmented and spread across HDD segments. Not sure how that squares with SDD’s and flash memory on phones and pads, but it certainly can’t do any harm, either.
Do a backup, factory reset, then restore from last backup. Easy as, really and can often help. It’ll be interesting to see how my old iP4 reacts to having iOS 7 installed, but it doesn’t have much stuff on it anyway, just an iPod and satnav device, and backup on a different network.