This is how I approached the regions. With 2 players and using the two expansion island regions I covered 4 of the original regions to keep the 2-player region total to 7.
Yep. This is why the KS edition comes with 4 ocean tiles to cover up 4 regions.
-edit- With respect to the instructions related to Carolina and the island expansions I also modified the wine tokens I put on the islands. The expansion instructions say when you exclude a region in order to use an island region you should place a wine token on the island equal to the region number you excluded. This is fine in a 4 player game. But for the 2 player situation above I excluded regions 2, 5, 7, and 9. So on one island I added wine tokens 2&5 and and for the other island I added tokens 7&9.
Wouldn't that make those regions a bit too desirable as they can satisfy 2 of Carolina's desired regions instead of just 1?