[twg-tds] Extensions

[Karl Berry]

    Take a look at pstricks.con: There exist different versions for
    (standard) TeX+dvips, VTeX, OzTeX.  Your suggestion would imply,
    that these had to be rewritten.

By "configuration file" I believe Thomas meant configuration files that
are not .tex input files.  pstricks.con is TeX, so it belongs under
TEXINPUTS.

I agree with your summary.  Put another way:
TeX syntax -> under TEXINPUTS
not TeX syntax -> under texmf/<program> (and does not use TEXINPUTS)