when is low TOO low?

Lowest xs I've seen is 2". The builder said it was an experiment in the lowest possible he could go...he said he wouldn't go lower. I plan on running about 3.5-4" on my bike.
 
Yes, 2x4's are rough cut to 2x4 inches but in the finishing process they are planed to 1 3/4 by 3 1/2.
 
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