Hey Dino,
Once again, nice work.

As for the local config questions, it may not be as "cool" as you thought. A local config will apply to the album it sits in, but will not always apply for "global" things like the upload screen. So while you can have a allow_uploads=0 item in a local config, that'll mean that if the user clicks on upload from that album, they'll be told that uploads are not allowed. But if they click on upload from any other album, they can still upload into the "blocked" album. (You could add a no_upload.txt file, but this is just an example.)
Note: This is in the latest version. In older versions (possibly the version you're running) even that won't work!
It still needs some tinkering to be completely effective for these "global" types of overrides.
And to answer your 2nd question, if a new album is created, it immediately falls under the global config, not the config of it's parent album. Not sure if that makes sense or not, but there are pros and cons to both methods...
Cheers