I am investing in a good set of pans. Any opinions on which height is better, 2 inch or 3 inch? Does it matter?

It's really personal preference. There are a number of threads asking this same question. You might find some help with them.

http://cakecentral.com/cake-decorating-ftopict-715389-2.html+3+pans

http://cakecentral.com/cake-decorating-ftopict-716707-2.html+3+pans

http://cakecentral.com/cake-decorating-ftopict-707990-2.html+3+pans

http://cakecentral.com/cake-decorating-ftopict-688813-2.html+3+pans

http://cakecentral.com/cake-decorating-ftopict-675446-2.html+3+pans

I have 3" Magic Line pans. Sometimes I wish I had some 2", but then I just don't fill my 3" as high.

It is a matter of personal preference, but I like the 3-inch pans. Most of my pans are from Fat Daddio's but I am gradually changing to Magic Line as I have had better experiences with Magic Line pans.

I like the 2" pans. I did not like the way the 3" pans baked.