Dribbling During an OB Throw-In

[Refhoop]

Last week I had/saw for-the-first-time as a player, coach or official:
A1 is in-bounding after a made basket, she dribbles a couple of times, picks up the ball and throws directly in bounds to a teammate.
In my mind: "Crap, I think that's ok, I'm not blowing the whistle... I hope no one else saw that... stay focused!"
Opposing coach is up mildly objecting: "she can't do that". I say to objecting coach: why not? His response was predictable: "She just can't"
Next dead ball: crew comes together and we all say, "never saw that before" and I tell them, I've never seen a rule prohibiting the act - so I let it go!
R tells coach: we'll check the book at half time - he's wining big, so its all good.
Low and behold: Case book: 9.2.2 situation D,
1. Any of you ever have this and get it wrong?
2. Same on collegiate level (curious)?
3. Can a player "double dribble" while OB?
4. If it hits the official, rebounds back to thrower... do we have nothing, except the shock of getting hit?
And, case book doesn't specify spot-throw in or after made basket.