unusual play - need your help

[sc/nc ref]

We had a play in a varsity boy's playoff game tonight that our crew discussed after the game (3 person crew)and couldn't agree on.
Offensive player is driving baseline (dribbling the ball), he elevates off the floor and has no where to go. Before coming to the floor, he seems to realize he is going to violate, so he drops the ball to the floor. All of the players, thinking perhaps that he has violated, simply stop. The ball hits the floor and no one attempts to pick it up. After a second or two the same offensive player picks up the ball and attempts a shot at the basket.
The official who was on the play told us in the postgame that she felt that it was a legal play, so she let play continue. Her opinion was that the offensive player could indeed pick up the ball after it hit the floor - even if it was untouched by another player.
Myself and the 3rd official felt that from the position the offensive player occupied (in air - dribble used) that he could legally only pass or shoot - and we thought he had dribbled again by dropping the ball to the floor and picking it up (thus double dribbling).
We agreed that a player could go get his own shot if it didn't hit anything, but that this was a dribble or a pass - not a shot .
Any help on this would be appreciated.
Was it double dribble, traveling, or legal play?