Unless you really love 2.04 for some reason, why not get 3.0 or 3.1 ROMs and install WB 3.0 or 3.1? I did on my A2000 and it was a massive improvement. Theres almost always ROMs on ebay for reasonable prices.
I dont know about the ROMs on your SCSI card, but with 3.x Kickstart ROMs, you can use up to 4GB drives.
And yes, its very easy to use more than a gig. I have several hundred megs of just games.
