The problem with 4-bit format is that ambiguous bases are so rare in a full reference that it's more efficient to handle the ambiguous bases in a special code path, rather than waste the 2 extra bits per base.
The 2-bit format stores only ACGT, with regions of 'N's stored separately (since N's are mainly contiguous in the reference genomes).
http://genome-source.cse.ucsc.edu/gitweb/?p=kent.git;a=blob_...