If I choose to spend that money that was hard for me to spend on a hardware wallet then I would have safe myself from some losses.
People lose their funds even if they store it in a hardware wallet, and that is because they have bad opsec or expose their seed phrase. Offline wallets like a hardware wallet or airgapped wallet is very safe, but the safety of your wallet also depends on you the user and how safe the environment you store your coin is.
don't keep Bitcoin worth $2000, $10,000 on a software wallet, even if its a open source software wallet I believe this amount is too much for a software wallet, having this much means you can afford a hardware wallet.
You can set up your Electrum software wallet in a completely airgapped device that would never be connected to the internet, this gives you as much safety as a hardware wallet, and some more experienced users prefer it to a hardware wallet because it is a DIY wallet and you don't have to deal with 'shady' hardware wallet manufacturers.