I feel there is a misunderstanding here. What are your concerns? I can see 3 concerns here: (correct me if I'm wrong)
1. There is a 1 / 2 in the THEN ELSE parts of the IF statement?
2. A TRUE FALSE should have been used instead
3. Native Boolean Logic of 0 &1
Let me start with the number 3. 0 and 1 and are not native Boolean logic. TRUE/FALSE are.
In the 3 parts of an IF THEN ELSE statement, the only part that should resolve to TRUE or FALSE is the part after the IF. However, the THEN and ELSE sections could resolve to ANYTHING -including Boolean.
The Example provided literally translates to .... IF the condition of x not equal 1000 is met THEN resolve to or enter the value of 1, and if the condition is not met enter the value 2. an IF statement could be used in a line item of any format, in the example provided that format is NUMBER so whatever comes after the THEN and ELSE should resolve to NUMBER.
I think I wrote the post in haste as I was confused as to my formula was not approved as correct in the LM2 but then looking about at the 2nd post the example provided is not actually for the question & hence they were not using 1/2 as the answer