My experience: almost every knife I do is with stabilized spalted maple from big leaf maples off my property. I have approximately 200 blocks, half of which have been stabilized so far by K&G. Almost all of them are solid and should make fine handles. However, I wouldn't count out Mr Doyle's experience. I have had a stabilized block break apart along a spalting line when I was cutting it into scales but I couldn't see any difference in that block compared to others from the same batch.
I'd say the odds are pretty good that it's fine. But remember, we're talking about an organic material, so there are probably variables that we aren't smart enough to know about and failure could result.
Definitely avoid the end grain as stated above, although I have made a couple of kitchen knives with end grain scales on a full tang knife and no problems so far after 2 years, but I'm sure the epoxy holding it to the tang is also helping keep the scale from splitting. I wouldn't feel comfortable using these on a camp knife or any other knife that will see rough use.
My suggestion would be to get your spalted pieces from a reputable dealer so that if it fails, you will be able to get a replacement.
~billyO