Source code is input, not configuration. Every time you run the compiler, you give it different source code. The whole point of the compiler is to transform source code.
Configuration is "input" that is not expected to change very often, but that the application developer can not guarantee will never change. Configuration falls into a few categories:
1. Context-specific inputs that can not be predicted or discovered automatically by the application. (For example, the DNS zones the process is expected to host - named.conf)
2. Inputs that are not expected to change very often, but should be easy to change if necessary. (ssh client or server settings)
3. For applications with interactive user interfaces, customization and changes to the default interface.
For the vast majority of applications, a text file capable of expressing simple data structures is more than sufficient. Others advocate using only a database, but only to make configuration dynamic so explicit reloads aren't necessary, not to make it more like a programming language.
The source-vs-configuration question is usually only be an issue when dealing with large, complex applications with very general specifications.