I don't think it's a failure of small ball. There system was working and forced the Lakers to go small too.
The issue is it's hard to beat Lebron James, especially when he's got AD next to him. I also think Rondo galvanized the Lakers, who were drifting a bit before he came back...he is really an incredible floor leader...taking so much pressure off of James.
Then, the Rockets had one superstar who had to come back from injury after a great season, and he sucked big time. If Westbrook had been healthy all along, he'd have been better.
And they lost Danuel House to some sort of violation....a wing defender scoring 11 per game and rebounding well, etc...tough loss.
So, to me it's more bad luck and having to meet Lebron. Winning a finals takes so many things to go right...