With conditioned grains, you're still limited to about 0.025" to get flow through the grain bed (and that's being careful). Many BIABers go much finer than that. Adding rice hulls would probably help (I haven't tried it) but is adding cost.
The high efficiency from BIAB mostly comes from squeezing the bag though. As long as the crush is fine enough to allow complete extraction of starch, you can get 100% conversion, but it takes a bit longer if the crush is coarser. I get full conversion in about 75 minutes with a crush at about 0.03" (dependent on mash temperature). Milled to flour, I've heard it stated that it happens in a few minutes. Either way, as long as you mash until you have full conversion, super high efficiency will come from the bag squeeze - would you want to do that after a recirculated mash?