We are in that we have a non-negligible chance of winning it all. But that doesn't mean our chances are really good. There are 5 teams in the west that meets this criteria. Suppose the Rockets are just as good as the other 4, that gives them a 20% chance of making the finals. And if they're 50% likely to win the finals, that brings their championship odds at 10%. Which is still pretty low. Due to IMO our bad matchup against OKC, I think our odds are much lower. Maybe 5%. But at least it's possible.
Good point, but I'd like to mention that there are actually 4 teams in the West that meet the criteria. The Clippers reached 20 losses before 40 wins.