I dont use many woods that require stabilizing, but I do think some should. When a wood is pourous or soft, stabilizing will just make the wood more impervious to moisture as well as make it harder, take a finish, enhance color, etc.
There is a place for stabilized wood and I will use it sometimes when called upon. If I have wood that I think could use some "help" I take steps to improve it's stability. To me, it just makes sense.
As for it's toughness, I have this knife to show that it can be tough too. I carry a small Ray Kirk Pocket Medicine. This one has stabilized Buckey Burl slabs for the handle. It held together after being run over by a car in a washed gravel drive. No cracks at all. Got scratched up, but to me, they are beauty marks.Lin