IME, well stabilized wood isn't simply a block of plastic, it leaves the grain open just enough to still be wood, and still stay workable as well.
Stabilized wood, of certain species in particular, soaks up a LOT of oil during finishing, so I suspect it is a lot more porous than most folks think.
I have kitchen knives from the 50's that have quality hardwood handles, still in use today. Yes, they've shrunk some, and a couple have small cracks, but none have lost their functionality.
Stabilization is just another way to include quality and durability into your knives, but a knife being high quality and reliable is not exclusive to stabilized woods, as long as you make the right choices with the wood you do use.