I guess this discussion is assuming a certain quality level and stability for both, which is not always a given.
Hardware for me is the selling point... it always has been now that I think about it, looking back at my purchases over the past decades. I may not have fully needed every feature, but at least its MY CHOICE wether or not too.
My only dabble into a software first design was my iPhone 5C, which admittedly is a pretty extreme example. Absolutely no hardware features at all. Taking it even a step further, with Apples premium $$$ for added internal storage and certified lightning accessories. I bought into the whole iCloud thing and it really didn't work for me. I found it to heavily dependent on local network speeds and reliability. Verizon is not reliable enough, even here in the bay area with Apple AND Google within 30 minutes of each other. I found iTunes way to big, bloated, clunky and controlling for "everything" it tries to do within the ecosystem. I didn't like iPhone apps either, and how revenue centric they are. They tease you with the free version, without features and loaded with ad banners and click bait. I totally prefer open source apps. I have not found it difficult at all finding reputable developers, and even if I download a buggy app... its EASY to find another right around the corner and give it a test drive.
The internal / proprietary low capacity battery eventually forced me out of the Borg. I did replace it myself with a new one, and the 5C does serve as my backup should my current phone die.
Fortunately today Android I think is FAR beyond those early days. I have found K,L,M releases VERY stable in my Sony Xperia Z3V and LG V10. I have even found it decently well supported (since nothing is ever really broken in the first place) at least through Verizon. But IMHO its still better than going over-board like the apple examples I cite above. Granted I was only on KK for 2-3 weeks, so thats hardly a large enough sample size for that release.