Thunderbolt was fast last time I used it via Target disk mode 🙂
You can do direct networking it you hook up with one cable & enable 'internet sharing' on one Mac. That means it will run a DHCP server & give the second Mac an IP over ethernet. You don't need a valid internet connection on Mac 1.
If you didn't use internet sharing I think you would need to manually assign the IP's & subnet masks in the network settings, but I'm still not sure it would work.
If you hooked up a router with a switch it should give out IP addresses via DHCP, otherwise the machines use 'self assigned' IP addresses, usually indicated by an IP of 169.x.x.x. Local networking becomes difficult because each Mac doesn't have anywhere to lookup the other Mac's address. Any old Airport base station or router would do.
The router manages a list of MAC addresses & IP addresses, a lot of network routing uses the actual MAC address, but it's translated via the local cache, or the routers ARP tables (IP's & MACs).
Don't worry, I think I just confused myself too 🙂