I thought encryption caused performance issues on Android. Well I mean I'm not sure if it still does but I remember it being a big issue when the Nexus 6 originally came out, although my N5X is performing fine.
I'm not sure if 16GB's is sufficient for his needs but Best Buy is selling a brand new Nexus 5 (Red though) for $210. I'd say it's probably the best phone in that price area just for the better software experience over a Blu budget phone.
http://www.bestbuy.com/site/lg-nexu...-red/8297713.p?id=1219322453386&skuId=8297713
From what I can tell, my Blu Life One X basically has stock. I know that some Blu models have a more altered version.