It's more a lack of lateral quickness than his height since he doesn't guard anybody taller that can post up very often (they gameplan away from those situations). And yeah, the stats are all screwy since he doesn't guard guys at his position.
BG starting would be a much bigger liability if this team had aspirations of going anywhere. But since they don't, it really doesn't make much difference. In general though, if BG is averaging above about .8 points per minute, he's not a liability as he is putting enough pressure on the other team to offset the mismatches he creates defensively for the bulls. But when he isn't hitting his shots or getting to the line, then generally he does drag the bulls down, or doesn't carry them very far depending on your perspective...