Hi Cyberfreak,
A logic-level Mosfet does not abruptly switch off with a gate voltage of 0V, nor switch on at 5V. Just do a Google search and look at a datasheet.
I have used a little 2N7000 Mosfet, and its datasheet is here:
http://www.fairchildsemi.com/ds/2N/2N7000.pdf
The datasheet says that its gate threshold voltage is typically 2.1V, and it is turned on a little bit, drawing 1mA. With a 4.5V gate voltage, it draws 75mA and has a Rds of typically 1.8 ohms.
Like all Mosfets, it works better with a higher gate voltage. The 1st curves in the datasheet also shown below, show that with a gate voltage higher than 4.5V it can conduct much more current. At 10V, it is excellent.
Because its resistance changes gradually with gate voltage, if you want it to switch quickly to stay cool, you must switch its gate voltage quickly. That is difficult due to its high gate capacitance which must be charged and discharged by your gate driver.
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