And packages are tested across releases, enabling one to dist-upgrade to a new version of the system easily. I think it's piuparts that does this job of testing packages among themselves too.
In preparation for a new stable release, it goes through what is effectively a package freeze. Maintainers are discouraged from updating packages in Sid in order to focus on the new release. So almost no new updates are uploaded to the repositories until Stable is finally out.
Between testing/sid/experimental you also got the choice of running "somewhat stable" vs "bleeding edge"; I'd usually stick to testing (except around the freeze leading up to a release).
Arch only has rolling release mode so everyone is using the latest (thus any potential issue in Arch will affect bigger % of Arch users) while Debian has stable and testing and I was wondering if that'd make Sid less stable for practical use (since "it's not stable").
I don't want to start a distro war here, just wondering about some anecdata of actual distro users.