TLDR: CNAME doesn't just forward A records, but MX records and others as well.
May be the case elsewhere (just no time right now to test this).
I would have started this reply by saying "not true" but don't know if the particular dns manager at mediatemple.net is setup in a way to be not compliant with the RFC.
Update: Upon further testing it does return a MX record but can't resolve the host name for the MX record.
And that still doesn't solve the issue with SOA/NS records, which need to exist at the root and thus will still conflict with the CNAME.