Currently, they take precedence when menu.lst is created for the first
time, which is probably at install, before you even can have made
/etc/default/grub, so yes this is pointless.
Unless you deliberately deletes the old menu.lst before you run update-
grub, but that doesn't rhyme withe "update".
** Changed in: grub (Ubuntu)
Status: Unconfirmed => Confirmed
--
update-grub overrides /etc/default/grub
https://launchpad.net/bugs/63240
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