It does not work ... you need to take their demo and instantiate the datepicker input box with yearRange: -2:+2 as well as changeYear, changeMonth. This provides the dropdowns in the calendar object and sets (what used to be the initial) year range based on the current year.
I posted a bug report but it was closed as a design issue for future releases, and I was told to add my concerns there.
[meanwhile something that worked in 1.7.x no longer works.]