It can be both, but certainly one issue is hardware quality. The Linksys WRT54G and WRT54GL (of which I've purchased 8), are cheap electronic devices that last on average 12-18 months. I did have one make it out to 3 years, but I also had one kick the can about 6 months in - so it averages out. What's worse, is the failure case is "Intermittent performance" prior to just dying.
Cisco also has made crappy hardware in the past, I've had stacks of Cisco 2960 switches with dead ports, but they make up for it on the business side by having really good RMA processes if you have support agreements. They also make phenomenal hardware as well - I had a Cisco 7206 keep running without any human involvement whatsoever for 10+ years.
I'd be willing to pay $500-$550 for a solid 4 Port GE, 1U Rack Mountable, fully open, appliance that I could drop whatever operating system (OpenBSD preferred), that had gone through some extensive HALT (Highly Accelerated Life Testing) at temperatures -55C to +85C that suggested an average of 20 year life in typical consumer (23C) environments. I bet there are 10s of thousands of people who likewise would jump at the opportunity.