Yes, true. Correct. That is still true, and applies to SHA-2 as well. And Linus was aware of exactly what you say, back in 2005.
My point was that the choice that was made was considered good enough for the purposes for which it was intended. In the context of the OP's comment, criticizing git for not making different code design choices doesn't mean that Linus was wrong, it may mean that the OP doesn't know and/or understand all the considerations Linus had. And Linus has said many times that the security of the hash is not the primary consideration in his design.
Git's choice of SHA-1 was not at the time predicated on having the single most unbreakable hash in existence, the hash's use is not for security purposes, and to talk with such incredulity about Linus' choice may be to misunderstand git's design requirements.