The server isn't only going to server static page. It's also going to serve a variety of other websites, many of them dynamic.
As for
Template Toolkit Isn't that a form of embedded perl + content management systems? What does that have to do with generating a httpd.conf?
As for generating a httpd.conf, I assume you mean using perl to write a dynamic httpd.conf, perhaps reading a textfile containing the domain names and then writing
<VirtualHost> sections directly in the .conf? Does this have any advantages over the mod_perl solution? I can't really see any disadvantages, except the outside generation requires another script to be run, with mod_perl you just restart apache.
Well, I have apache running for my other websites, I would prefer not to have to run two web servers..