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I don't fully agree with the config thing. In microsoft land you can transform your configs based on a build parameter. And if you're using MS SQL you don't even need to use a password login, you give the service account the permissions to access the database. It's pretty harmless and fairly standard.

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The configs for .net I would definitely consider part of the code - they can have some really intense setup for the project!

If I was forced to put credentials in there, then I would ignore web.config, but commit a web.config.default file without the credentials. Part of the setup instructions would include copying the file after cloning the repo and putting in your own machine-specific credentials.

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