Inside TYPO3
2.2.1. The Backend Adminstration Directory, "typo3/"
In the directory "coreinstall/" I create a symlink to the typo3/ administration directory:
# ln -s ../typo3_src/typo3/
The lets see what happens if I point my web browser at this directory:

Yes of course - the configuration directory. "typo3conf/" is a local directory which contains site specific files. That can be locally installed extensions, special scripts, special all kinds of things and of course the obligatory "localconf.php" file! In other words: The "typo3conf/" folder of a TYPO3 installation contains local, unique files for the website while the "typo3/" folder (along with others) contains general source code that could have been shared between all installations on a server. Well, read more about this in the Installing and Upgrading document.