Lol, a 3D object has depth, volume, x-y-z. A 2D object is a texture/sprite that has no depth, x-y.
A plane, made of a single or two triangles, is a 3D surface that exists in a 3D space.
Physics can apply to them like any other rigid body, if needed.
Anyway, there's no point in arguing the fact that they used cardboard surfaces to display their flames, because the other, impressive, method would be to have recourse to fluid simulation, or opt for high density particle emissions (like the fire in Crysis). The problem being that both are computational heavy, not to mention that the latter is a fillrate hog, but it's not even said they'll look good in the end.
There are a few real time fluid simulations, but I haven't seen any real time implemention to display fire, and concerning the high density particles, the result is far from looking good, if you ask me.
So, the only issue the fire in the game has so far is that the textures they use for the effects are, simply put, bad.
By the way, the Gametrailer videos show a game that looks quite nice; at least graphically, I can't say that I'm a fan of Factor 5's 3D flying shooters. The game has an impressive scope and their LOD system is extremely powerful, being able to see detail materials when close to a building is a nice feat for a flying game.