The apparent rarity of this species is due to the difficulty of observing them in their normal habitat. Stone dragons have the ability to pass through stone as if it were air, and are seldom seen in the open. The best time to see one is probably during an earthquake -- which is rarely a very good time to observe anything.
If you do encounter a stone dragon, STAY OUT OF ITS WAY. They are not agressive by nature, but are simply unconcerned with smaller and softer beings.