I agree with smokes, McHale is playing Lin and Harden to their strengths.
When you think about it, Lin is a PG who can drive to the basket and score buckets, and Harden is a SG who can do the same thing, except he shoots from anywhere and can pass very well for a SG.
They can play together but not the whole game, which is why a guy like Patrick Beverly or even guys like Kirk Hinrich or Shaun Livingston (who would be perfect fits in Houston) would help both Lin and Harden play their game.
I heard Rockets are interesting in smoke's boy Bynum and are ready to offer him a big contract in the off season.
Rockets have like a 5-7 year plan with Chandler/Harden/Robinson/Montiejunas being apart of the formula.
Haven't followed up on Houston as much, but Lin continues to improve by his 3rd year in his contract; Houston may re-sign him. He's a good player, a really good defender and he's explosive and inconsistant.
I believe he'll be a more consistant player by his 3-4 season in Houston. Imagine Jeff Teague who was erratic and now he's forming into an excellent PG.
Felton doesn't compare to Lin, Lin's defense alone > Felton's entire game.