Hello,
First the schematic of the TWR-MCF5225X is correct. Let me try to explain. regarding the SH1, actually the SH1 leads the reset out signal from MCU to BDM, that will tell if the hardware reset is issued successfully. If you would use the BDM connector instead of the OSBDM, the SH1 should been installed.
For the PIN 26, it is really no need for BDM debugger, so leave it open is OK.
Please pay attention to PSTCLK, this is an important pin need for BDM communication, I am confused that you mentioned this pin is "unconnected"