You haven't watches James much if you think he's a bad jumpshooter. Dude was just barely off of 50/40/90 last season. Difference is now almost all of his shots are coming off his own dribble under extreme duress since he doesn't have another player who can create as well as he does and draw defensive attention. They have money to add another max guy, I was trying to think who would fit. Maybe Josh Smith. He doesn't really draw double teams but he is a borderline all star talent and fits right into their running system. Omer might be worth it because he is great on D and doesn't miss games, but Lin was not. Hell, you'd be better off with Jarrett Jack or Mo Williams
I've been watching, hooping with, and knowing of James since he went to Audubon and then Artesia after that. He isn't that great of a jumpshooter. Last season's almost 50/40/90 is completely skewed simply because of who he was playing with. The Rockets have him and believe that he can be someone they can build around. Those conditions that you described are exactly what every cornerstone of a franchise goes through. If this is how he looks, then he will be the cornerstone of a franchise that won't get in the playoffs. He can't shoot, and gets the benefit of driving to the hoop, and seeking arms to go under so he can go to the line. Without the free throw line, he's a huge volume guy.
I will say that the team he has is trash and I do believe that with better players around him, that could potentially change the way he performs but as is, it's nasty man.
Oh and The Wizards over the last two weeks actually look respectable. Imagine that. Is it Wall?