Here is a pair of boots in my current game. I encrusted it with rocket boots 12 times and now nothing can hit me. If nothing can hit me than I suffer no negative side effects of unsuitability. Now I don't care if any of my armor is unstable and that is just throwing the balance of the game (I'm trying to make a 60 shield). Perhaps there should be no or encrustment
I think the instability mechanic should apply to when the item is crafted, with a percent chance of destroying the item. I don't think that three layers of copper plating should cause a eldritch dimensional rift.