I have been using this phone from september 2014 to till date and still its running very fine. Keeping in mind it just have 1gb Ram, still it delivers smooth functioning.
No lag at all if you clear RAM constantly. Recent updates has solved all the problems of over heating, lagging, camera etc.
Mi has truly developed best phone till date and even after using it for almost 20 months its back panel is intact and just minor scartch over display. In future I am again going to purchase Mi phones only. Very satisfied with the performace considering the price tag of mere 6K.