The statement that most apps don't run in a workable state on most hardware is a problem in and of itself ("fragmentation"). I understand that you can't expect apps to work on outdated hardware, but 2 years is hardly an extraneous period of time. Believe it or not, not all people upgrade their phones every 4 days to coincide with Android handset manufacturers' release schedules.
While I agree that you can't judge an entire ecosystem by a single phone, that still doesn't resolve the poor state of apps in the ecosystem as a whole. Even with the latest and greatest hardware, most of the apps are buggy at best.
All of my friends and many people that I have met use various Android phones/tablets. I have spent substantial time testing models of all sorts. Overall, I have probably had my hands on at least 15 different handsets across all carriers and at least 4 tablets. The same issues plague all of them regardless of recency of hardware release.
If you test an app like Facebook on iOS 5 (4s) and ICS (latest Nexus phone), the user experience and level of finish isn't even close.