I think it was the dooglas dice site that was attacked or whatever for having a 2% house edge, and everydice is way lower than that. I actually think it was more along the lines of saying a 2% house edge site could not survive because house edge is so low.
Just-Dice.com has always had a 1% house edge.
You may be getting confused by one of the following:
1) Erik Vorhees apparently once said that it wouldn't be profitable to run a dice site with an edge lower than 1.9%, which is the edge at SatoshiDice, which he used to own.
2) Just-Dice used to have a maximum profit per bet of 1% of the bankroll. This was found to be too high, and caused the profit to go negative when we were attacked by a whale. We lowered it to 0.25%, and then put it up to 0.5% a few days later.
The bottom line is that to be confident of making a profit you need to have your maximum profit be a smaller percentage of your bankroll than the house edge percentage.