Now you see the problem with using the file system in an enterprise application. :-)
What is wrong with env-entrys?
But you can put the property files in a jar and place the jar in the farm directory.
Yes, I agree with you on problem with using file instead of descriptor file etc.
Since, application(product) will be installed by different clients some parameters needs to be changed every time product gets installed these install sensitive parameters, I would like to put it in file or some other place where after installing product client should be able to edit it and properties get replicated on all nodes of a cluster.