I also found NuFile, which does exactly the same thing as Document Palette, but with a different twist.

Here's a comparison of the more (or less) important differences:

NuFile doesn't use bezel squares to present the new document templates, but rather keeps them nicely together in a sub-menu in the context menu.

Secondly (and this may be the most important thing to consider); in NuFile you can define which new documents gets opened automatically, and which doesn't, once you've created them. Whereas Document Palette doesn't do anything once you've created a new document (which is probably what most people want, though).

Document Palette sports a shortcut letter facility, where you can quickly press a defined letter/key to add a new document based on, say, the first letter of its file extension.

As a last geek note on the differences between the two, it's got to be said that NuFile's operation takes fewer steps in order to accomplish the same task as Document Palette; in fact, it just take one single right-mousebutton click, if you hold it down and select what you want from the context menu.

But as the saying goes; in the end, it boils down to a matter of taste and personal preference.

Here's a Document Palette-specific hint to call it from the context menu:

As for Document Palette, I found a way to quickly invoke it via the excellent context menu utility called OnMyCommand. Insert this little AppleScript code and save the menu item as "New File…" or something like that. (Note: in order to edit OnMyCommand's context menu items, you must use the accompanying application called OMCEdit, which also comes bundled with OnMyCommand). It takes too long to explain all the details about adding context items in OMCEdit, but in general, here's the AppleScript that I use in OMCEdit:

tell application "System Events"
key down control
key down option
key down command
keystroke "n"
key up control
key up option
key up command
end tell

This is stunning. For web developers, Document Palette is so convenient!

I wish there was an alternate option to use Document Palette's functions from the right-click context menu as well. But nonetheless, it's just a matter of taste and choice; it doesn't stand or fall with this.