Dan_Ref - The player is releasing the ball in a way that does not meet the definition of a dribble. Since the player is moving with the ball without dribbling, I have a travel. There is no violation until he picks up the ball. What's the difference between the original question and A1, while standing, tosses the ball in the air, takes two steps, then catches the toss? Either on the floor or in the air, I believe this to be a pass. Mr Ogg's point merely illustrates an outcome of allowing the player put the ball on the floor, move, and recover it without dribbling.
Of course, we have mulled this over for a couple days now. This is better than 20-20 hindsight! If I saw this happen tomorrow, I would probably let it go just from the shock of seeing it happen.
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