Yes I looked at this as well. In short, recyclers need to be nerfed massively if you are playing with redpower 2, because redpower 2 cobble generators take no energy to run. So on my world, recyclers need 10x more energy to run, and I also make the diamond rate 1% instead of 3%.
Sounds like a problem with RedPower2, then. Can't recommend changes to IC2 simply on the basis that someone "might" be using it in conjunction with another mod that allows one to exploit something. Better off lobbying the RedPower team to make the sensible change of requiring power for a machine that generates something... I don't know, I've never used it.