DHH once said the major advancement that Rails provided was empty folders, 
just a standard place to put things. Any app I go to, I can immediately 
find the assets, models, etc. In the same vein, I would support shipping 
with a staging environment. In my ideal world there would be a way to 
inherit production settings into my staging env, where I could just 
over-ride them as needed (with a different DB by default). 

I was introduced to the concepts of test/develop/prod environments as I was 
learning Rails. I think that was a good thing. Now that i'm teaching Rails, 
I make sure to introduce students to the concept since it is so useful. I 
agree that we can go overboard by providing a million default environments 
out of the gate and that would be bad. Though most good Rails applications 
i've seen have had a staging environment and server set up, and I believe 
that vanilla Rails should promote good practices. 

I also agree that configuration shouldn't be stored in source at all, and 
for those in the thread asking why that is, I think 12factor covers it 
fairly well http://www.12factor.net/config . I personally like to keep any 
of my server access tokens, secrets, and connection strings in environment 
variables, but there are still elements that I set inside of the config 
files. It would be killer to move Rails towards a source-control-less 
configuration setup. Even then, I would support having some support for a 
staging environment out of the gate. 

Getting outside of implementation, what are the downsides from 
users/maintainers to having this functionality in `rails new` ? 

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