Brian,
You are right on target with the difference between delegating and dumping. People hesitate to delegate because it takes more time and more thought to do it right. Often, it is just easier to do it yourself and get it done more quickly. To do so, however, deprives your staff of the opportunity to learn and develop new skills. Delegation also develops the "team" in that gaining exposure to the "inside story" builds loyalty, understanding, and support.