It also begs the question, why it was named "etc" :)
Try to change any of it though, and a lot of luddites will come out screaming bloody murder. It's just not UNIX if it makes sense.
[1] http://en.wikipedia.org/wiki/Filesystem_Hierarchy_Standard
"There has been controversy over the meaning of the name itself. In early versions of the UNIX Implementation Document from Bell labs, /etc is referred to as the etcetera directory as this directory historically held everything that did not belong elsewhere (however, the FHS restricts /etc to static configuration files and may not contain binaries)."
As someone said - naming things is the hardest!
etc > e.t.c > edit to configure.
the .rc suffix has a nice history btw