Stash,
If the connection between Exchange 2000 and the GC is interrupted, routing operations and many other essential functions stop dead. In particular I think you are speaking about the following
The MTA to shuts down if Exchange loses contact with a GC. The logic behind this is to stop processing to eliminate the possibility of losing any messages. Unfortunately, sometimes the MTA doesn't (didnt) shut down cleanly and it hangs (hung). The only resolution is (was) to reboot the server--certainly not an optimal process in a situation in which the GC might come back online after a temporary network problem.
This was fixed some time ago... I daresay SP2
Also, Outlook clients depend on GCs for access to the Global Adress List (GAL), so if they can't contact a GC, clients can't validate addresses in email headers, browse the GAL, or check properties of other users or distribution groups. Indeed, the sudden disappearance of a GC affects any client currently connected to that GC and forces users to restart their client.
This is still a fact of life, and I can replicate it again and again. This reason alone is a good enough argument for redundant GC's..... but I'd still have the opinion that every DC holding a GC is overkill and counterproductive.....