I don't think you understand whats going on. PBKDF has absolutely nothing to do with 'protecting' your password. Its done because passwords suck ass for encryption keys.
TrueCrypt is taking your password and turning it into something USEFUL as a key for encryption, not 'protecting it'.
Standard passwords are pathetically low on entropy, a full twitter or SMS post is still not 256 bits of useful entropy, and its unlikely your passwords are anywhere near that. I admit I don't know your password, but if you're only using the standard character set, I can safely say its pathetically low on entropy. You need full binary keys generated from good random sources, but you'll never remember that, will you? Imaging trying to type it somewhere.
What the hashing does is takes your password and contorts it into a larger key that is more useful than whatever pathetic string of text you throw at it. It does so in such a way that, like all hashing processes are supposed to, you can't go backwards because bits are discarded along the way.
2000 rounds is pretty low, but thats only a tiny small part of the encryption/decryption process. And your password (as I understand true crypt) really just projects are larger private key, which is what is actually used for encryption. Its been a while since I've looked at or used TrueCrypt, so I may be wrong about that last particular bit.
For a full description: http://en.wikipedia.org/wiki/P...
I do write encryption software for a living. And again, its not about protecting your password or making it harder to guess, its about turning your crappy password into a useful encryption key, nothing more.