For very short projects, it does. For example, I'm using Vegas for editing and compositing sequences that are less than a minute in length. However, I do also do long-format work. It's just not feasable to edit a 2-hour documentary in Vegas and wait for it to render. I do sometimes have crashes when rendering long projects that use the DigiSuite codec, too. But I have never seen this problem while working on shorter (<60sec) projects.
Vegas and DigiSuite are a tantilizing combination, for sure! It's just not 100% practical for longer format work. Sooooo close, yet so far away! ;)