Of course sacks are included in the numbers for the passing game. I used Pro Football Reference's play index to come up with the stats:
http://www.pro-football-reference.c...location=DL&pass_location=DM&pass_location=DR
While the running game didn't perform on a high level the passing game should produce way better averages, that's why the focus is on Rodgers and the receivers struggling.
The Packers are 9th. in 3rd. down conversions at 48.1%, a pretty good number. That happens to be the exact same conversion rate as in the high flying 2011 season when they ranked 3rd. in the league. Last season they were 3rd. in the league at a nearly identical 47.2%.
Your earlier conclusion that the Packers are suffering from unfavorable down and distance does not appear to be the issue.
The Packers are tied for 23rd. in total first downs with 38. If you exclude the Packers 7 first downs by penalty, they drop to 26th. In 2011, they were 5th. in total first downs. Last year they were 7th.
The problem is not so much unfavorable down and distance as it is not getting more first downs on first and second down. The lower frequency of biting first down chunks in the early downs is reflected in the pass yards per attempt and completion. This is a downfield passing game and QB that is not getting the big plays.
Further, the Packers offense has been starting in a hole this season. Average starting position has been the 22 yard line, 30th. in the league:
http://www.footballoutsiders.com/stats/drivestatsoff
It takes little observation to see that the Packers emphasis is conservative when deep in their own territory in keeping with the mantra, "don't turn over the ball", with it's corollary, "especially don't turn the ball over in our own territory." This reduces the instances where they will look downfield.
Clearly there is a passing game disfunction, but it has little to do with down and distance. "Distance" as in "starting position" is a contributing factor. A bend-don't-break defense not accumulating turnovers at a favorable field position, short punts, and getting nothing out of the return game are a contributing factor to this passing offense that appears tight and cautious.