Well I tried it in Morrowind using wine: it doesn't disable the video and game music, it does however disable all sounds, including scripted sounds. For example when starting a new game with Disable Audio=1 Jiub will stay silent, no subtitles, and the name menu will pop up immediately. A better name would have been Disable Sounds I think.
What about important things in the morrowind.ini that are not settings at all, but rather belong to the game data? Maybe they should be imported by omwiniimport, but in seperate file(s)?
Examples what I'm talking about: Weather settings, class selection dialog questions.
That is what the fallback system is for (already implemented, just not in use yet).
We import these values into the openmw.cfg file in a special format and store them in the World object. For now OpenMW has to use them directly.
After 1.0 we will extend the ESX format, so we can store these settings there. And if these settings don't exist in the loaded ESX files (files created prior to 1.0), we will use the fallback values from the openmw.cfg file.