To summarize:

-Harden's intangibles are severely poor (leadership, focus, and communication skills particularly) He doesn't seem to put much effort into anything at all unless he has the ball in his hands. His teammates sees this and it's basically a trickle down effect and they follow his behaviors and mannerisms. I believe Terry is one of them that voiced problems with Houston Rockets.
-This leads into their defense being shitty. No communication. No effort. They have some good individual defenders ie Ariza, Beverley, Smith, Howard, Brewer (at times) but the lockerroom culture is just so bad...
-Bickerstaff is a worse coach than McHale. I always thought McHale was at least an okay coach. Certainly not a great one, but not necessary to fire.
-Iso offense is only going to get you as far as your best player can take you. Harden isn't doing as good as last season, thus they weren't as effective
-They technically should have never made the WCF. Clippers choked so bad. Clippers would have won in 6 without that meltdown.
-Howard and Harden and perhaps some other players don't see eye to eye. When your two best players can't get along chemistry wise, your whole team is fucked.