C-STABLE says:
A crate cannot be stable (>=1.0.0) without all of its public dependencies being stable.
However, Cargo treats unstable versions in a special way:
The version 0.0.x is not considered compatible with any other version.
Since this means that Cargo will not allow any updates of an unstable dependency specified as version 0.0.x because it might contain breaking changes, it seems to me that a stable crate can have an unstable dependency that is specified as version 0.0.x, and that C-STABLE should only apply to crates that have dependencies on the forms 0.x or 0.