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If carriers that charge billions of dollars per year can't get delivery reports right, then SMS is massive fail as far as I'm concerned. In the US, the reliability is provably bad, and I have often experienced (1) complete network outages (which is a complete failure of SMS) and (2) intermittent SMS delivery droppage, both from Twitter and other people *on the same network* as my phone.
We do our best to ensure reliability, but it's only as good as the weakest link. SMS is reliable only because failure is tolerated and human level retry is low-cost. For automated systems where retries and unreliability are unacceptable, SMS is a major problem.
b.
A few years ago on T-Mobile, back when they were delivering voicemail notifications as SMS, I stopped using T-Mobile because their voicemail notifications were unreliable. This is the CARRIER sending me an SMS and that didn't work reliably.