I do, however, agree that doing a directory-walk on virtual resources is not nice. But my opinion is that "virtualness" is a property of the resource, and hence should be designated when selecting the resource. That is why I suggested changing SetHandler rather than <Location>.
And perhaps I'm going way off in left field here, but why should this be user-configurable at all? Shouldn't the (for example) server-status handler know itself that it is a virtual handler, and therefore indicate that the directory-walk should be skipped?
I like it! assuming we tweak it to be the module's responsibility to declare this property, vs. strictly the handler's (too late).
Greg