1) The muons don't 'fall' to Earth in the sense that gravity plays no detectable role in their speed. In the hundred or so microseconds it takes for them to reach the ground, gravity would add essentially nothing to the original speed(energy) they inherit from a cosmic ray particle.
2) In the Earth frame, the muon decay clock runs slow, so almost all reach the ground though 50% should decay every 2 microseconds.
3) In the muon frame, the Earth clock does run slow, but this is irrelevant. The reason the muon reaches the ground, in the muon frame, is that the Earth and its atmosphere are extremely contracted in the direction of Earth motion (per the muon). Thus the atmosphere is is not 10 km, but only a few hundred meters thick per the muon.
To complete the account in both frames, we would also have to bring in the relativity of simultaneity (along with time dilation and length contraction). This is how the muon frame accounts for how the Earth frame considers the muon life to be long while the muon considers Earth clocks to be slow. Specifically, per the muon, the clock on the ground that the Earth considers synchronized with a clock reading the time of muon creation in the upper atmosphere is, instead, set way ahead. That is why (despite running slow) it reads a long time for the muon's life.
[edit: I see I cross posted with Nugatory.]