I think "hardware" vs. "software" is the wrong way to frame this. The big difference is between shared-kernel multitenant and guest kernels. gVisor (in some configurations) is like an 80% solution; a partially emulated guest kernel. I think the verdict is in on shared-kernel vs. not: don't share kernels between tenants.
The hardware isolation itself --- AMD-V, VT-X, &c --- has held up for almost 2 decades now. You never know, of course, but if you were going to place a bet it probably wouldn't be on hardware isolation failing before software did.