I'm not a cryptographer but to me "broken" seems to imply that the core algorithm itself can be attacked. If merely applying it in certain ways as part of some larger system can fail then aren't most (possibly all) ciphers broken? It's entirely possible to do all sorts of stupid things.
Granted, a 2^32 block limit is pretty severe by modern standards.
Si (2^32)*8 works out to 34GB for TDES. How many applications involve encrypting that much data in one go?