For some reason we are not seeing the description of the Double. Certainly if it is for takeout E should bid at least 3H - but even 2H would be much better than Pass.
I imagine GIB thought it was penalty double. Though certainly I agree it ought to be for takeout. As an aside I really hate GIB's "2+ cd" in trumps penalty doubles which seem to be in a lot of places. IMO the doubles should be 2-, takeout, or 4+, penalty. Not 2+ penalty which seems to lead to a lot of ridiculous contracts. Rule base needs to be combed for "2+" doubles IMO.