The main problem with the Rockets right now is defensive effort and not having enough people who are actually making 3s. Tucker, House, and Rivers all have zero confidence right now. Through November, Tucker and House were both around 45% shooting 3s but have dropped to right around 30% for the rest of the season. Add in Harden's recent struggles and the team has really been shit since the first quarter against the Hawks. Gary Clark getting waived the day before that Hawks game to get in position to avoid the luxury tax didn't exactly help things either.
I do think the roster as currently constructed can with the championship this year, but not how they are currently playing. Keep playing like this and it's a first round loss that isn't an upset because the Rockets will be the 6-7 seed. Would like to see a trade to bring in a big wing that can shoot (what team wouldn't?) but the Rockets have basically no salaries to match with.