He says that a config file is half-turing, but an sqlite database can have no turing. Won't this make the configuration far more complex?
insert into rules (rule) values('don\'t require auth for /, but do require auth for /foo/*.jpg')
The use of a db is more to create a standard networkable interface for other clients to read/modify the config than a statement about the semantics of the config syntax.
data = config_file.read()
"insert into config (config) values ('%s')" % data
Are you confusing offline representation with a runtime structure?