A hardware issue is only one that can't be fixed by software. Any hardware issue that can be compensated for in software is really a software issue.
That's not true at all. Hardware can function outside of intended ranges. That's a hardware issue. We can often compensate for that with software changes. It's still a hardware issue. The issue is with the hardware, not with the software.
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Every single piece of software has bugs, regardless of the cost. So yes, bugs will be expected.
Exactly. NASA spends billions of dollars on their programs and yet they still experience bugs. It's nearly impossible to squash all bugs, especially as complexity of systems increases.