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Is two inches of extra fabric along the width of a piece enough for framing? I know most places say to leave three, but the piece of fabric I already have would just leave two. I'd love to not have to go buy more, hehe.

I usually don't leave more than 2 inches of fabric for the borders--and have even used as little as 1 inch in the past. I think it all is up to the stitcher and how exactly they intend to have it framed. I do my framing myself, so it all works out for me the way that I do it

With my 'full coverage' projects, I have them framed right up to the edge of the stitching. My framer likes having the extra fabric - but 2" should be good - 3" gives extra piece of mind. I would highly recommend securing the edges to reduce/eliminate fabric fraying.

What I've done when I've found myself short of fabric when framing is sewn an extra strip of plain cotton fabric onto the edge and it's hidden behind the mat and frame so if you looked at the piece you'd never know it was there! That's the long way for me saying 2" should be fine!

My father in law who also stitches had a situation where his local needlework shop miscalculated on his fabric and he ended up with barely half an inch from the bottom of his stitching to the edge of the fabric. His framers still managed to frame it beautifully though.

Like with many "issues" in stitching, it is really up to you. If all you have is two inches of fabric then I would leave either one inch showing or frame flush with the design. It is just a matter of what you want. If you are framing it yourself then you have plenty.
As for framing horrors, I had a framer I told them two inches from each of the items that were farthest out, a wave, an angel's halo, butterflies, and a fishing pole, the framer centered the boat and the boat was not the center of the design, I told them they did it wrong and I was not happy with it...they gave me a discount.