t5505: modernize and simplify hard-to-digest test

This test uses a subshell within a subshell but is formatted in such a
way as to suggests that the inner subshell is a sibling rather than a
child, which makes it difficult to digest the test's structure and
intent.

Worse, the inner subshell performs cleanup of actions from earlier in
the test, however, a failure between the initial actions and the cleanup
will prevent the cleanup from taking place.

Fix these problems by modernizing and simplifying the test and by using
test_when_finished() for the cleanup action.

Signed-off-by: Eric Sunshine <sunshine@sunshineco.com>
Signed-off-by: Junio C Hamano <gitster@pobox.com>

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