1.4 Some Items Sold Separately

Below are some things that are explicitly not httpy's job, with pointers to tools that do these jobs well. Where non-Python tools are mentioned, Python substitutes can almost certainly be found or built. Such substitutes can be used either above or below httpy on your stack.

daemonization, complex error logging: You probably want Dan Bernstein's daemontools. httpy logs everything to the standard output, so use multilog to pick up from there.
access logging, ssl encryption, virtual hosting, load-balancing: Use an HTTP proxy server such as Pound. You could also do these things with a general-purpose HTTP server such as Apache or lighttpd.
caching: Use a caching proxy such as Squid, or, again, Apache.
authentication, authorization, sessioning, storage, templating, etc.: These are your responsibility. Lucky for you, there are plenty of Python packages available to help you.