Mike-that's a good question. My understanding has always been both passing and ball handling are a part of the TO algorithm, though, probably ball handling more so (or, maybe BH is just more important against a press). Passing (especially team passing, or, the passing ratings of the 5 guys on the floor at that particular time) also drives how open likely your shooter will be when he takes the shot. Better team passing = finding open shooters = better FG %.
Team passing is something I WAY under-valued in this game for far too long. I'd look for good passing ratings in my guards and then wouldn't care as much about it in the 3-5 positions. When I started looking for bigs and small forwards that could pass my team FG% seemed to noticeably improve.