Generating Dynamic Javascript for a Magento Module

acme-dynamic.xml

<!-- app/design/frontend/default/default/layout/acme-dynamic.xml -->
<?xml version="1.0"?>
<layout version="0.1.0">
    <acme_dynamic_js_index>
        <reference name="root">
            <action method="setTemplate"><template>acme/dynamic/js.phtml</template></action>
        </reference>
    </acme_dynamic_js_index>
</layout>

Acme_Dynamic.xml

<!-- app/etc/modules/Acme_Dynamic.xml -->
<?xml version="1.0" encoding="UTF-8"?>
<config>
    <modules>
        <Acme_Dynamic>
            <codePool>local</codePool>
            <active>true</active>
        </Acme_Dynamic>
    </modules>
</config>

config.xml

<!-- app/code/local/Acme/Dynamic/etc/config.xml -->
<!--?xml version="1.0"?-->
<config>
    <modules>
        <Acme_Dynamic>
            <version>0.1.0</version>
        </Acme_Dynamic>
    </modules>
    <frontend>
        <routers>
            <dynamic>
                <use>standard</use>
                <args>
                    <module>Acme_Dynamic</module>
                    <frontName>dynamic</frontName> 
                </args>
            </dynamic>
        </routers>
        <layout>
            <updates>
                <dynamic>
                    <file>acme-dynamic.xml</file>
                </dynamic>
            </updates>
        </layout>
    </frontend>
</config>

js.phtml

<?php // app/design/frontend/default/default/template/acme/dynamic/js.phtml
/*
 * Use this file to generate your JS magic. For example:
 */
$_product = Mage::getModel('catalog/product')->load(27); // for the sake of the example
?>
jQuery(document).ready(function($){
    $('#featured').html('Featured Product: <?php echo $_product->getName() ?>');
});

JsController.php

<?php // app/code/local/Acme/Dynamic/controllers/JsController.php
class Acme_Dynamic_JsController extends Mage_Core_Controller_Front_Action {
    public function indexAction() {
        // Set the appropriate content-type
        $this->getResponse()->setHeader('Content-type', 'text/javascript');
        // Loads and renders the layout file we will create soon
        $this->loadLayout();
        $this->renderLayout();
    }
}