While I do like the ease of deployment of this type of http handler (and the fact that you do not have to deploy a web.config entry for the handler), in cases where you may not want to use the _layouts directory OR you want to have a custom file extension, here is an alternative method that works as well (although it does take one manual configuration step in IIS so it may not be suitable for a "No Touch Deployment")
1) Create your http handler as you normally would for an asp.net application. You can add references to the SharePoint DLLs and interact with the object model since you are in the App Pool.
2) Add and entry into your web.config to register your handler and define the extension you are going to use. IE:
3) Define your custom extension in IIS through the IIS > Web SIte Properties > Home Directory > Configuration > Mappings
In this case, we defined a .proxy extension that the handler will pick up. Our handler is a .NET assembly so we need to add the mapping to route .proxy requests to the .net isapi dll (C:\WINDOWS\Microsoft.NET\Framework\v2.0.50727\aspnet_isapi.dll).. also, make sure you UNcheck the "
From comments on http://msdn.microsoft.com/en-us/library/bb457204.aspx