It's because the OS and apps, etc bog it down. The actual processor is still performing how it did when it was first used. The fact that you restored it and it got better proves that.
Why does the rate of it slowing down get faster and faster? For example, if it took a year for my iPhone to start slowing down, after I reset it, it becomes fast again and then it'll start slowing down after 6 months... and then 4 months.. yada yada..