When I set up for live "Cart Shipping Calculator" and set "Combine Shipping and Handling", the user still sees the "raw" shipping price in the shipping options dropdown at the bottom of the Cart page. If I have an added Handling charge, I don't want the user to see what that is, or be able to easily compare the base shipping cost and the "shipping" line item on the cart. What they pick on the "Ship Method" line should be what they get on the "Shipping & Handling" line.
Likewise, if you empty out your cart, you will see the Handling upcharge in the cart summary:
Sub Total : $0.00
Discount : -$0.00
Shipping & Handling : $1.00
Sales Tax 0% : $0.00
Total : $1.00