Why does Apple make their own hardware? Should they or shouldn't they?

They make their own hardware because then they can fine tune the software to take full advantage of it. This way, the hardware and the software are both literally made for each other. If they didn't make their own hardware, there would really be nothing special about them.

Now, to answer your question Apple is in the hardware business because they make a ton of money controlling the manufacture process from beginning to end. Apple is not just a software company they are a hardware company from the phones and tablets to their computers they make and design it all. Also, Apple will not be allowing OS X on any computers besides the ones they build because then there have to be more drivers written for the OS making more chances for stuff not working.

If you don't like Chris, don't watch his reviews, unboxings, TLDR or vlogs and unsubscribe to him. Re-evaluate your course your life and be more appreciative of what others have done for you. He spent lots of money and have talked to alot of people in getting the stuff YOU, part of the community, want. He made this community-powered Q&A site possible. He made vlogger-fair possible. He did it all for you.

About your Apple rant, no, Apple ISN'T a software company, they do both software and hardware. If you looked in Apple's past, they have their own design of computers, iPods, iPod touches, iPhones, iPads, Macs. They made OSX, iOS, Pages, Numbers, Keynote, Safari. So they are not just a software company at all, they are both. A software company is more like Microsoft, Google etc, whom made more software than hardware. These companies thrive in software but suck in hardware. Apple thrive in both, which sets them apart from other companies.

They don't make their own hardware really.

They get Desktop/Laptop CPUs from Intel,

As with any company, their RAM is bought from many suppliers,

They have in the past had huge deals with Samsung buying hardware.

In all fairness, they only design a tiny bit more of the hardware than any other OEM, at most all they design is the logic board/motherboard, the chassis and possibly a few other parts, but most is supplied by suppliers.

They do control the hardware that their software can be be used on for probably 2 reasons,

A) By controlling this, only they can sell Apple software on their computers and devices which means they claim all the profit for this market.

B) To ensure product quality: They make sure that everything is compatible and works to provide the best user experience.

To finalise, you say that Apple is a software company, this is completely incorrect. Look at their product line, they make far more hardware devices that software suites:

Hardware

iMac

Mac Mini

Mac Pro

Macbook Pro

Macbook Air

iPod Touch

iPod Shuffle

iPod Nano

iPod Classic

iPhone

iPad

iPad Mini

Software

At most, they make iOS, OSX, iLife and such and finally their server software, but this is all made to run on their hardware. I think it's fair to say that Apple are either a hardware company, or a mix of both, in my view, the latter.

"Why is Apple their wasting time with hardware, if they are a software company?"

Umm... where did you get that idea from?

"I do know that they did make most of their computers until the 90's when they allowing people to license their operating system."

They still make their own computers, they contract it out to china, but they still design and control much of the manufacturing process.