I guess the percentage of crashes due to hardware is high because people with faulty hardware are experiencing the vast majority of crashes. It sounds kind of dumb when put like that, I'm actually surprised it's that low a percentage.

I guess the percentage of crashes due to hardware is high because people with faulty hardware are experiencing the vast majority of crashes.

It is not that simple, it does not only depend on the hardware but also the code. It is like a race, what happens first - you hit a bug in the code or your hardware glitches? If the code is bug free, then all crashes will be due to hardware issues, whether faulty hardware or stray particles from the sun. When the code is one giant bug and crashes immediately every time, then you will need really faulty hardware or have to place a uranium rod on top of your RAM and point a heat gun at your CPU to crash before you hit the first bug, i.e. almost all crashes will be due to bugs.

So what you observe will depend on the prevalence of faulty hardware and how long it takes to hit an hardware issue vs how buggy the code is and how long it takes to hit a bug.