I don't quite get why things are rearranged the way they are when trying to get an equation to be used in fixed point iteration. For example,
$x^3+2x+5=0$
could be rearranged to give
$\:x=-\frac{5}{x^2+2}\:or\:x=-\sqrt[3]{2x+5}$
But apparently not
$x=-\frac{x^3+5}{2}$.
Why so?

The problem is that you generally want the fixed point iteration mapping to be contractive, at least in a neighborhood of the fixed point. Otherwise you start with a small error and end up with a larger error.
The situation is easier to see in a case where the exact solution of the equation is easily constructed. Look at something like $x^2-x-12=0$, and you're trying to find the root $x=4$. If you use $x=x^2-12$, the problem is that although indeed $4=4^2-12$ (i.e. the desired solution is a fixed point of the mapping), if you have an $x$ close to $4$ instead, $x^2-12$ is generally further away from $4$ than $x$ was. For example $3.9^2-12=3.21$.
The standard way to check this is to compute the absolute value of the derivative of the fixed point function at the fixed point, which in this example is $8$. If it is larger than $1$, then the mapping is not contractive near the fixed point, so the iteration (usually) does not converge.