By no means is it time to write this team off. They're just now getting healthy and shaking the rust off. There are still 27 games left - plenty of time to make up a two game deficit to PHX or possibly four games to DAL/GS. They've dug themselves a hole, but it's certainly not insurmountable.
That said, it won't be easy. Of those 27 games remaining, 16 are on the road. 13 are against teams with a winning record (with 9 of those on the road). 10 games left with the Eastern Conf, though three of those are with Miami and Indiana. They've only got three games left with PHX/DAL/GS (two on the road) - the last game of the year is at home against the Mavs. That could be big.