The main problem, if it is one, is that White can play (1.d4 d6 2.e4 g6) 3.c4. There is nothing necessarily wrong with this for Black, who can choose between transposing to the King's Indian or various options which keep to a 'Modern' path - so after 3.c4 Bg7 4.Nc3, say, Black has 4...Nc6, 4...Nd7 4...e5 and (I imagine) 4...c5 as viable alternatives to a King's Indian. I suppose he could also try 4...e6 and later ...b6, ...Nd7, ...Ne7, ...Bb7 etc. with a Hippo, although for some reason that always strikes me as a little bit indulgent in this particular form.
Another, probably slightly lesser problem, is that White can meet 1.d4 d6 2.e4 g6 with a set-up based on c3, Bd3 and Nf3 - this is the approach recommended by Kaufman in The Chess Advantage in Black and White, for example. I confess that I found this a somewhat peculiar recommendation - after a later Bg5 it's essentially a Torre Attack against the King's Indian which, while not entirely without merit, is certainly not the most challenging system. On the other hand, some Black players don't like it when White has d4 solidly defended.
Note that after 1.d4 d6 2.e4 Nf6, White's 3.Bd3, although again a perfectly valid try, can be met with 3...e5, with the idea 4.c3 d5!? which is generally thought to equalise fairly comfortably. for what it's worth I've played this line as Black against weaker opposition and found it a little tough to generate winning chances - but that was probably just me not playing very well.
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