Confirmed. I have tried this on multiple machines with multiple, MD5 verified images, with multiple USB drives. The resulting drive does boot, but there is no casper-rw file at all. Perhaps usb-creator should offer the option to create and use an ext2 partition for persistence. This would fix both the 2GB limit by dd, and the 4 GB limit by vfat.
Confirmed. I have tried this on multiple machines with multiple, MD5 verified images, with multiple USB drives. The resulting drive does boot, but there is no casper-rw file at all. Perhaps usb-creator should offer the option to create and use an ext2 partition for persistence. This would fix both the 2GB limit by dd, and the 4 GB limit by vfat.