If you play around much with rocket stability you will quickly find that there are several factors that influence overall stability and performance (pitch/yaw inertia, vehicle finess ratio, fin design, etc).
For long skinny rockets you probably want a larger margin, closer to 2. But you don't want much more than that because to achieve that, you generally have to add excessive nose weight with hurts your performance. Oh yeah, and it will weathercock badly.
For short squatty rockets (Fat Boy, Big Daddy, etc) you probably want a little smaller margin, like 1 (or even less). And they work just fine that way!