While doing some testing of the Simple Web Service wizard, I discovered that if a project doesn't have even an empty web.xml, you can't create the sample service. In the case of AS 5, you need the web.xml, but in the case of AS 6 and up, you don't need the web.xml, so this is definitely a bug.

To reproduce, create a new Dynamic Web Project without a web.xml (if you create one in Indigo/Eclipse 3.7, this seems to occur automatically) and then use the Web Services->Simple Web Service wizard to try and create a JAX-WS sample. It complains that it's an invalid Dynamic Web Project because the web.xml is missing.