> Did this ever get answered? If so I missed it.

I did not answer yet. I am quite busy...

> I just compiled teTeX-1.0.7 and noticed that it installs files under 
> $TEXMF/web2c, that are also installed by teTeX-texmf-1.0.1.

The reason is that teTeX-texmf-1.0.1 must be complete enough to work
with just the binaries.

On the other hand, it is usually a good idea to install new pool files
and stuff like this when building new binaries.

In short: this is intentional.

Thomas

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