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Here are some ideas for improvements.  If you would like to contribute,
please send mail to tex-k@tug.org first.

Kpathsea has never officially been released as a standalone library,
even though in practice it is used that way by OS distributions.
Perhaps it would be good to support a standalone release.

For multiple texmf.cnf files (or multiple dvips configuration files),
replace extra :'s by the value from the next file in the path, rather
than the value from the next level.

Support runtime registration of file types to search for, not just
compile-time. Either by a procedure call, or by reading a configuration
file. Implies putting the envvar list into the kpse_format_info_type struct.

cd during filesystem operations, to minimize the pathname
length. Implies always using xgetwd.