OK, this MAY seem a little bit of an odd random question but someone with an indepth technical knowledge of how iTunes works may be able to answer it, so here it is, please help as I have a compulsive habit of needing to know an answer once the question has popped into my head and I am not going to be able to sleep otherwise! 
Here it is - Does iTunes record everything you do in its data or does it just keep what information is required for what is currently in it?
In case that makes no sense to anyone, if I create, say, a playlist in iTunes and drag a load of, I dunno, Manic Street Preachers or Modest Mouse into it, obviously iTunes will keep data on that as it is there in the application, but if I chose to delete that folder, or burn a copy of it, or whatever, does iTunes continue to document changes and the files presence even after the file has gone. Or if a MP4 has its name changed, does it record the change or just make the change of its exsisting record?

If that sounds a little stupid or makes no sense, sorry, its not for anything in particular or for any real reason, it just popped into my head the other day and I can't find an answer or have the technical knowledge to find out!
Thanks
Here it is - Does iTunes record everything you do in its data or does it just keep what information is required for what is currently in it?
In case that makes no sense to anyone, if I create, say, a playlist in iTunes and drag a load of, I dunno, Manic Street Preachers or Modest Mouse into it, obviously iTunes will keep data on that as it is there in the application, but if I chose to delete that folder, or burn a copy of it, or whatever, does iTunes continue to document changes and the files presence even after the file has gone. Or if a MP4 has its name changed, does it record the change or just make the change of its exsisting record?
If that sounds a little stupid or makes no sense, sorry, its not for anything in particular or for any real reason, it just popped into my head the other day and I can't find an answer or have the technical knowledge to find out!
Thanks