Stanky, I'll reproduce here the Gazole post if you didn't read before.
He is talking about BEACONS and LOCATION SENSORS FOR WI-FI.
Don't use the word "ridiculous" so openly as you used. I told I'm not engineer or programmer, just read Gazole's post and used his focus on LOCATION/REGION theme to solve my issue. I didn't change any of his suggestions, I just verified that my Country settings at 5GHz band was changed to Mexico and turn to Brazil as the 2.4GHz band setting. It solves my issue that started after upgraded to 8.1.1
gazoleOct 7, 2014 3:53 AM Re: iPad Air WiFi (5GHz) issues after iOS 8 upgrade
Re: iPad Air WiFi (5GHz) issues after iOS 8 upgradein response to NikCh
Folks, as far as I see disabling Location services for Wi-fi as advised by some people here helps someone as Apple seems to have issues with 802.11d protocol implementation in iOS 8 http://en.wikipedia.org/wiki/IEEE_802.11d-2001 and Location sensors for Wi-Fi.
Basically what 802.11d does is that it does not allow you to use certain channels on Wi-Fi in certain countries. As you can see from this table (http://en.wikipedia.org/wiki/List_of_WLAN_channels#5.C2.A0GHz_.28802.11a.2Fh.2Fj .2Fn.2Fac.29.5B17.5D) you can not use any channel you like while you are in US, some channels are not allowed in EU etc...
What happens nowadays with lots of routers installed here and there is that some routers are sending 802.11d beacons and these beacons carry country code, but these country codes are not correct sometimes. So some router (most of those are made in China) broadcasts CN country code (which is China), iOS device sees this beacon and applies certain restrictions on channels it (iOS device) will operate. Thus some neighbour with such router might ruin your 5GHz 802.11n. If you have your router setup for US 802.11n channels (or set to Auto) and your iOS device see beacon from some other country earlier than same beacon from your router - you're stuck and your iOS device can't connect to your 5ghz 802.11n.
How to check if this is an issue:
if you're on Mac, start Terminal and run the command /System/Library/PrivateFrameworks/Apple80211.framework/Resources/airport -s
you will see the following response (list of networks our Mac see)
SSID BSSID RSSI CH HT CC SECURITY (auth/unicast/group)
dlink178 1c:7e:e5:d0:df:хх -65 1,+1 Y RU WPA(PSK/TKIP,AES/TKIP)
hh245 cc:5d:4e:fb:8f:хх -67 1 Y TW WPA2(PSK/AES/AES)
Dread 00:22:90:90:07:хх -69 11 N -- WPA(PSK/TKIP/TKIP)
MajorWiFi 50:46:5d:cc:c2:хх -41 6 Y -- WPA2(PSK/AES/AES)
sohc f0:7d:68:9b:da:хх -75 6 N -- WPA(PSK/TKIP/TKIP)
you can see in CC column that some routers broadcast country code, some not. Thus is I am in Russia and want to use Russian 802.11n channels I might face an issue as my neighbour's wi-fi router is broadcasting Taiwan country code.
Why resetting network settings might help? Because when you do the reset, iOS device resets the country codes it seen before and if you're lucky enough - it will hear the correct 802.11d beacon from your network earlier than any other.
To fix this particular issue you need to shorten beacon interval on your router from 100 (default) to let's say 75 (on my dd-wrt it looks like this)
This will make your router to send beacon more often, so chances that your device sees your network earlier than others are higher.

Another point is to enable 802.11d in your router if it is not enabled yet (it is not enabled if you see "--" in CC column in terminal output higher above)
I spent lots of hours trying to figure out why my Macbook can't use my 5ghz 802.11n network until I found the great post about this (http://wifi-mac.blogspot.ru/2013/03/mac-os-x-5.html). All credits go this guy.
It seems that Apple made a mistake with the priorities device gives to data it receives from location sensor and Wi-fi. So if Location sensor tells device that you're in US and 802.11d says you're in China, obviously Location sensor should be the trusted source which seems to be not the case with iOS 8