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You can do per-directory config in nginx with the location block, it's just that you just can't put the config inside the directory itself and have nginx automatically load it.

You can tell nginx to reload its configuration without restarting the entire server process by running "sudo /etc/init.d/nginx reload", or on ubuntu "sudo service nginx reload".

'service' is not just on Ubuntu - i believe it started life on Red Hat, and has now spread everywhere. Including FreeBSD:

http://www.freebsd.org/cgi/man.cgi?query=service&sektion=8

Oh, I thought it was part of upstart for some reason. Thanks for the the clarification.

I <3 nginx and apache. Tech is a toolbox. Pick the closest tool for the job.

Per directory config is extremely beneficial for static hosting / VPS, but sketchy to get the security of values just right.

I find the lack of dynamically loaded modules more aggravating, personally. Having to recompile and optionally repackage the damn thing because you need a module not included in the base nginx is a pain.