I don't believe age and/or miles is the determining factor in CPS failure. My C240 is over 16 years old with 170K+ miles, with the original CPS, and there are plenty of cars under 5 years old that have them fail. This is also not an MBZ problem - it affects almost all makes and models - just search The Internet and see.
So, what makes the CPS fail? You can search that, too, and find many answers. The CPS uses a Hall Effect sensor which generates a small electrical charge when it is exposed to a magnetic field. It sits above the flywheel (a.k.a. flexplate) detects its rotation. The outer rim of the flywheel has perforations of "teeth" and "gaps":
As a tooth on the flywheel passes under the CPS, the Hall Effect sensor detects a change in the magnetic field and sends a signal to the ECU. I am fairly certain that the flywheel itself is not magnetic, but instead, there is a magnet on the end of the CPS with a Hall Effect sensor above that. When a tooth passes under the magnet, its magnetic field changes and that is detected. This is a very simple, proven piece of solid state electronics. It has no moving parts and is not subject to any wear and tear. However it is exposed to extreme temperatures, and that is when it seems most likely to fail.
The magnet in the end of the CPS has to sit very close to the teeth on the flywheel in order to get a pulse, within about 0.75mm. I believe that temperature-related failures are due to very small deformations of the bell housing, flywheel or even the CPS itself causing the gap to expand enough so that the magnetic field is too weak for a proper pulse. Another possibility is that temperature changes may deform the semiconductor material inside the CPS. Once the temperature equalizes, such as by pouring cold water on a hot sensor/bell housing, it works again. Slight variations in bell housing shape, CPS length or flywheel shape can make some cars or CPS more prone to these intermittent failures.
Of course some CPS's fail totally. This could be due to enough hot/cold cycles that permanently deform or damage the sensor, its internal wiring breaking, or even metal particulate from the flywheel collecting on the magnet on the end of the CPS.
So, why do "cheap" or "fake" CPSs fail? I would guess because they are simply not made to the exacting tolerances of an OE or genuine Bosch part. This makes them more susceptible to changes in temperature.
Well, that's my "how to build a clock" post for the day (I think!).