How about an even simpler explanation, as I understand it, anyway:
When the voltage waveform peaks, the current through a resistive load peaks at the same time. That means that a watt-meter, which measures both voltage and current simultaneoulsy, will indicate the power in watts.
When the load is capacitive, the current actually peaks ahead of the voltage, because the capacitance charging current is at its highest rate while the voltage waveform is changing from plus to minus or minus to plus.
The voltage changing rate is the highest when the voltage itself is lowest, i.e., when near the zero (crossover) point. The capacitance current is high before the voltage is, so we say the current leads the voltage.
An inductance has the opposite effect. It's current is the highest after the voltage peaks, when on the way back towards the zero point, instead of before it does, so we say the inductive current lags the voltage.
In both cases, the current peak does not coincide with the voltage peak, so a meter that measures both the voltage and current in order to read out the power, will not see the two separate peaks at the same time.
A watt-meter will showt the power to be less than volts x amps. Watts are the voltage x the current at any given instant. Volt-amps are the peak voltage x the peak current, regardless of their relative timing.
Even though the power supply system must be sized to carry the highest current as well as the highest voltage, not all of the total voltage and the total current will be indicated by the watt-meter.
What's worse, most loads can only utilize the same energy that the watt-meter reads, so the portion of the total current that is not in synch with the voltage does not go towards productive load output.
The power-company's supply system, has to be sized to carry both the usable power and the unusable power, just as the customer's system must, yet the customer only benefits from the usable portion.
When a customer has a mix of resistive loads as well as capacitive and/or inductive (collectively known as reactive) loads, the proportion is what we call the power factor. When everything is in synch, the PF is 1.
When there are reactive components in the load, the PF will be less than 1, unless the capacitive and inductive effects happen to be exactly equal. PF-correction devices do exactly that: counteract the low PF.
When PF-correction means are used, the don't eliminate the low PF, they merely reduce how mcuh of the supply system must carry the resulting unusable current. They sort-of 'shunt' the wasted current.
The closer to the offending load the corrective device is, the less of the system has to carry the extra current. Otherwise, the unusable current thravel through the entire system, back to the POCO's generators.
The POCO, when saddled with extra power the meter doesn't resond to (this not allow them to bill for), yet they must carry, they tack on a low-PF penalty. So, it benefits the customer to improve the PF.
However, since homes aren't billed for low PF, there's no monetary advantage for a homeowner to buy and use the "power-saving" devices being sold these days. Besides, the correction has to be sized for the PF.
Added: Keep in mind that PF can never exceed 1, and that Watts can never exceed VA. I deall, they're equal, but when they're not, PF and VA will be lower. Remember that and you won't mess up on test questions.
One more tidbit. "Ohm's Law" is about the relationship between current, voltage, and resistance. It does not address the relationship between current, voltage, and power.
That's what I lovingly call "Watts' Law."