Then make it. Define "physics". Force and rotation. In other words, accelerated movement, decelerated movement (drag) and rotation.
If you know how to move a character along an axis and rotate it by pressing buttons - you just made 99% of your physics engine. Now make movement and rotation when not pressing buttons. Now make it work against pressing buttons. POOF:
http://www.youtube.com/watch?v=IS7Og1zvdy8
Now we can set bools to change how that movement works for or against you based on states for even greater control of the character and really tweak it. Now we can create even more dynamics to our game by altering the player's "physics" without having to create external forces that act upon the player. We just control the player, itself. We can adapt this for enemies, too. We can even use this for multiple projects! Increase/decrease complexity as we see fit for dynamics without being tied to Unity's built in stuff.
Collision vs physics. Did you collide? No. Keep moving. Did you collide? Yes. How far is your raycast entering the object? Do we need to move the object back out of an overlap before drawing and if so, by how much of the raycast? POOF - collision. So if our bottom raycast is touching a ground tag, object or layer, we stop downwards movement. Are we not touching? !grounded
I'm going to get every damn Unity user to stop using Unity's built in physics, collision and player controller if it's the last thing I do!