Hi Artefact2, unfortunately the information you received is inaccurate. SDHC cards up to 32GB are absolutely supported on the Kobo Touch device.
With 1.9.17 we implemented some fixes for the SD card support, but none of our work was related to or affected by the size of the card.
If you're continuing to have problems with your SD card, please let me know and I will do what I can to get you sorted.
Last edited by SameerH; 05-08-2012 at 04:29 PM.
Reason: addressed appropriately to OP