UPDATE: Ok, so I was wrong. Somehow, without Yao, the Rockets are still winning. They'll make the playoffs just fine. Now how they do in the playoffs without Yao is still anyone's guess.
ORIGINAL: With the west being as competitive as it is, it is quite likely that after this impressive winning streak, Yao's injury means that the Rockets miss the playoffs. Even if they do make the playoffs, I see it as another first round out for the Rockets.
I think that the possibility of Yao not playing in the Olympics is of bigger importance than how his injury affects the Rockets and the NBA. If he is truly incapable of playing, I don't think it will be a major issue. The problem arises if Yao could play by the Olympics. I'm curious to see what happens if doctors clear him to play, but Houston tries to convince him to stay out of the Olympics.