It is very stable. I believe it is from having the custom kernel (it seems that whoever puts together image knows how to keep the arch guest and whatever host happy). What you will see with most vps providers with arch is that you purchase a plan, run pacman -Syu then something no longer works (usually the network interface). I don't know exactly what causes the problem, but my understanding is that it is due to incompatibilities with the guest kernel and the host or the technology the host is using. On linode you don't have to install the linux package they usually provide close to the latest (currently 3.7.x).
Ah, I see. I use Arch on Digital Ocean, and I've had a pretty good experience, aside from their initial image being a bit old (I had to change its settings to use netcfg and systemd).