I'm building this same batch of stuff even as I write this on my hpux
system at work. The first think I'd point out is the default for
installing binaries is /usr/local/bin. No, thank you. There's
already enough in /usr/local/bin!
You will need to edit Makefile.in in both Web2C and kpathsea to change
CFLAGS. I can't find any other way to use -O2 instead of -g.
I needed to set TEXINPUTS before dumping plain tex. I don't
Except for /usr/local/bin I used the defaults, which puts everything
in /usr/local/lib/texmf. Fine with me. I don't know about you, but I
hate uppercase letters in common path names.