Nothing wrong with an extremely shallow sandbed, other than the potential for the bottom of the tank to become exposed, due to flow or digging critters.
There are benefits to having a deeper sand bed as well, which includes additional denitrifying filtration due to the anaerobic zone that forms under the sand, though a minimum of 6 inches of sand is needed. There are pro's and con's of going either way.
Anything under 2in. is considered a shallow sand bed (SSB), anything 6 in. or deeper is considered a Deep sand bed (DSB). Anything between around 3-5 inches is considered a "no go zone" as there can be some detrimental side effects from having a sand bed within these depths.