Hi there! Yes, in front of the sink is the perfect place for that hand towel. I have one of those shallow pull-out doors just below my sink, where I keep the SOS pad, etc. It has two pulls on it, so I keep a hand-drying towel on one, and a dish-drying towel on the other.

If Better Homes & Gardens ever comes to do a photo shoot, I'll just remove the towels lol.

If the dishwasher has a handle it would also be another spot for hand towels.

How about your fridge? I used to have a long handle like you suggested and screwed magnets on it. I found those at Lee Valley in Canada. There might be a similar store in the US. The bar can be mounted on anything that has metal so I placed it vertically on the side of the fridge. I liked it because the towel is somewhat hidden. However, I just changed my fridge and the sides are not metal so I can't use that bar anymore. At this point, I bought a clip from 3M that I place on the side of one cabinet. The clip is not the best because I have to be gentle when I dry my hands otherwise the towel stays in my hands.

Because I don't have a logical place to hang towels, I go through about 4 every day. Once they are damp or soiled, into the laundry room they go.

bgfuqua, that's exactly where we keep ours to. We have windows in our kitchen and i would like to place hand towels where she now has curtains. I like the idea that the Sun dries them, but not my space...so she wins :)

They also sell those Command 3M hooks and they are removable if you change your mind. They come in different finishes too. You could put them anywhere, also inside your cabinet door. Good luck! :)
http://www.command.com/wps/portal/3M/en_US/NACommand/Command/?WT.mc_id=www.command.com&WT.ctod=01:47

A permanent drawer pull is a good idea. I just bought one of these for the sink base since its removable and I don't really like the look of a towel hanging in the kitchen.

My grandmom had a three towel system on a funky rack. One was for drying one for wiping and another for spills. They make pullouts for under the sink now. Her towel holder was on the window sill mounted to the frame. My mom used to keep her one towel on the oven door which had to be moved when you needed the oven and later buttoned to the silverware drawer handle - she used a lot of paper towels.

Me, I have a system somewhat like my grandmoms. There is the microfiber for the blasted glass stove, the Tag towels for the dishes, the terry rags for the spills and the french linen ticking for the glassware. They go on tea towel hooks (like command hooks) inside my cabinet door along with the pot holders. At night I soak my sponges (yes I have a few of those in use too) and rags in a small compost bucket with some vinegar, dishsoap and water.

If you choose to store your towel under the sink, I am wondering if adding a catch to open the door with your foot would help. You would not wet the knob and the outside of the cabinet door. It may also help to not wet the floor since once the door is opened, you will be quicker at reaching the towel.

Yes all my cabinet doors are spring catches. My elbow has the scars to prove it with the spice cabinet next to the stove :)

I bought a paper towel holder that sits next to the sink.

I have the same removable over-the-cabinet thing that rocket has. It was around $12 at bed bath and beyond.

Kitchen designer here: Design it into your backspash on a nice hook somewhere near the sink. If you have to reach below with dripping hands you get water on your cabinets' finish and floor. This is a little old-fashioned but works for those kitchens not using formal or highly decorative backsplash tiles.