Michael42,
Yes, the more you know, the more you realize what you don't know.
Yes, /etc contains a lot of important files and directories. You can look at all the files in /etc/default to see what's in them. Some of the files have decent documentaiton within them.
Here's what I know about some of them:
/etc/default/cron: determines whether a log file is kept for cron jobs. This affects all users who have permission to run cron jobs.
/etc/default/fs: specifies what the default filesystem type is.
/etc/default/login: specifies various items, which are documented fairly well in the file. This is the file you edit if you want root to be able to login from someplace other than the console (not recommended for security reasons). This also is the file that contains SLEEPTIME. This is the parameter that determines how long the lag is before you get another login prompt if you put the wrong password in. I have mine set to 0 so I don't have to wait for another login prompt when I type the wrong password.
/etc/default/passwd: specifies default files for passwords.
/etc/default/su: determines whether all su attempts are logged and where they are logged to.
As I said, this is just some of the files in /etc/default.