Hey there, @Peach1
I'm using the latest version of iOS 8.1.2, even i heard some rumors about 8.1.2. But it's working fine with me.....!!!! had no problem till now with it. Now coming to iOS 7.0.4 it's the older version of iOS and keep on updating it's OS for removing maximum number of bugs. If you are using an iPhone then it's the time to upgrade because, the contact picture while placing a call or receiving a call will appear in full screen size. Where in 7.0.4 it's not like that, you can just see a bubbled picture at top corner. There are many flaws that has been redeemed in iOS 8.1.2.
My suggestion is, Go with the newest update of iOS...............
