I would say the biggest problem was us taking too many jumpers and just overall giving up early. There were really only two quarters of true basketball played, the 1st and 4th. The Rockets blew the game wide open early in the 2nd then both teams coasted at pretty much a standstill until Hayward awoke in the 4th quarter.
Then the (lack of) interior help defense really killed us from getting stops, not to mention some unfortunate foul calls (Marvin fouling Harden on the 3 (he kicked his legs out) and Burks getting called for a foul because he breathed on Harden).
Offensively, you're probably right. I'm just looking at the fact that Harden and Lin combined for 24 FTAs, which is devastating. Part of the problem is our defensive rotation, but part of the problem is containing their guards on the perimeter. Late in the game, Marvin was doing a good job on Harden, with the exception of that 3-pt foul call (flop).