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I don't think anyone's said that a 2GB card doesn't work; just that, given the current "flat" library page, there's no really not much point in trying to put 5,000 books onto an SD card. You can if you want, but it'll take you rather a long time to find anything in the library!
With the new version of the Gen3, however, with 512MB RAM, you'll probably find that you don't need an SD card at all. I have 260 books on my Gen3 at the moment (many of them illustrated, or multi-book "anthologies") and am using less than half the available memory.
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