Why don't per-item custom icons work when I open a Zip file or some other virtual folder?
A customer observed that when they opened a Zip file containing an Excel spreadsheet saved as XML, the icon for the spreadsheet in the Zip folder is just a plain XML icon rather than a fancy Excel-XML icon. "Is there any way to invoke a shell icon handler on an item inside a Zip folder?" Even if there were a way, you wouldn't like it. Think about...