ya, that's essentially it.
hands determines how easily a player can catch and finish a pass.
pass rating determines pass success and how well a pass is received.
bad passers often throw passes that require the receiver to turn around or slow down to catch the pass because it's thrown too high/low or too far to the left/right--typically what you see when your bigs throw long or difficult passes.
hands is a pretty significant rating this year. in past, almost anyone could catch a pass and immediately go in to a shot or dunk/layup. this year, if a player has bad hand ratings, they typically have to gather (multiple animations for this) before attempting a shot or layup/dunk.
i really like the new passing mechanics and i probably run one of the more free-flowing pass heavy offenses in the league and i never feel like any of my bad passes are a result of the CPU cheating or insane defensive awareness--it's always poor decision making.