You suspect correctly, I treat my possessions with respect and my Apple watch is no different. Neither the watch nor band has ever seen water or any other liquid, never caught the band on anything, it has been babied you might say.
In the last 14 months two out of three Solo Loops myself and family own have torn, all dark blue, all Apple direct purchases. If number three fails the same way then it is going to be just a bit more than bad luck, I'd say two out of three is already pretty convincing.
Fact of the matter is that even if all the Solo Loops sold were failing, do you think it would make news headlines, I doubt it, a handful of owners will take to forums like this, sure. Owners will either accept it, buy a new one or maybe replace it under warranty if they are lucky.
If Apple and other companies can sell products they know have defects and still make money, you can bet they will continue to sell that product, unless enough people complain or they have some legal action.
Maybe at this time it isn't possible to produce a rubber/silicone hybrid strap like this, one which can withstand being stretched multiple times without failing. Could be that customers have been used as Guinea pigs with this product, as is often the case with many brands. If it turns out to be a known defect then surely it would have shown up in testing, I would hope these products are tested to destruction but maybe that is me dreaming, we will never know.