There are numerous examples of projects which follow that recommendation. I'm told, for example, that the recommendation on the excellent Blender 3-D graphics system is to avoid nested includes. Other examples:
NASA: http://sunland.gsfc.nasa.gov/info/cstyle.html
European Molecular Biology Open Software Suite (EMBOSS) http://emboss.sourceforge.net/developers/c-standards_new.htm...
Atacama Large Millimeter Array (astronomy): http://www.alma.nrao.edu/development/computing/docs/joint/00...
Clinical Neutron Therapy System (for radiation oncology): http://staff.washington.edu/jon/cnts/impl.pdf