They were correct that there is no need for it to run in the kernel. They were incorrect in thinking this would affect the company's future, because of course the sales of their product have nothing to do with its technical merit.
I think you've got it half correct: sales absolutely does have to do with the technical merit. Their platform works, it's just folks overestimated the impact of a single critical defect.
Nobody would pay crowdstrikes prices if it didn't stop attacks, or improve your detection chances (and I can assure you, it does, better than most platforms)
> Nobody would pay crowdstrikes prices if it didn't stop attacks, or improve your detection chances
In my experience people pay because they need to tick the audit box, and it's (marginally) less terrible than their competitors. Actually preventing or detecting an attack is not really a priority.