First of all, that 7 game series was one of the most lopsided 7 game series in history. The 4 games that the Warriors did win, they completely blew the Rockets away, including the two where they had Chris Paul. The only game that wasn't a double digit blow out was game 7, which they "only" won by 9, but anyone who saw the second half of that game and the Rockets meltdown knew that the game wasn't even that close. The Rockets on the other hand only had one big win and their other two wins of the series were really close.
I would've actually been more impressed by the Rockets and more optimistic that they could beat them going into the next season had the Warriors won the series in 6, or even 5, but where each game was really close instead of Rockets being human punching bags in the 4 games that the Warriors did win, as was the case.
Secondly, since when does it mean that a team making another team beat them in 7, that those two teams are necessarily close? Going by that definition, the Garnett-Pierce-Allen championship Celtics were barely better than the 37-45 record 2007-08 Atlanta Hawks, whom they beat in 7 in the first round:
https://www.basketball-reference.co...-conference-first-round-hawks-vs-celtics.html
So to sum it up: Yes, still very much far and away.