It looks like a Webkit (doesn't work in Safari or Chrome) bug displaying the inline divs. C's block is "displayed," it just has 0 width and height. I'm not certain what the spec says about inline divs, but they're not conventional. If you use block instead of inline it works.
(Edit deleted, it was wrong.)
Edit: this appears to be a simple browser redraw bug. You can make the inner part
<span id="infoa">ALPHA<br></span><span id="infob"></span><span id="infoc">CHARLIE</span><span id="infod">DELTA</span>
and it fails the same way. The newline before the non-displayed #infob appears to trigger #infoc's display problem. Seems like this should be reported to the Webkit people.