Phonon-VLC is now at version 0.3 and is said by its developers, "We now consider the Phonon VLC backend stable enough for day to day use and encourage everyone to give it a try." Mark Kretschmann, the founder of KDE's Amarok media player, also said, "Phonon-VLC is rock solid now. Not a single crash in two weeks. Smooth as butter."
Phonon-VLC is also the first Phonon back-end to integrate audio and video capture support for Phonon that was developed as a Google Summer of Code project.
Additional details on the Phonon-VLC 0.3 release can be found in this blog post along with source download links.