The record of Australian teams losing in playoffs across the Tasman stretched into a 22nd year, with Queensland joining the Brumbies in making a quarter-final exit on Saturday night.
The Reds were well in their clash against the Chiefs but two second half tries to superstar Damien McKenzie killed off their hopes.
They failed to take their opportunities, at one stage in the second half unable to pick up any points despite holding the ball for 28 phases.
Kiss, who will play understudy to current Test coach Joe Schmidt for three Tests before taking the reins, said his Queensland side deserved more than they got out of their season.
"Mixed emotions in a lot of ways - I'm bloody proud of the boys in a number of ways," he said following the loss in Hamilton.
"At halftime, I think we were still confident about what we were doing on the park and we were standing up to the things we said we'd do.
"I'm gutted for the boys more than anything."
It's the first time in nine years in a full competition that no Australian team has featured in the Super Rugby final four, with the Hurricanes, Chiefs, Crusaders and Blues advancing.
But Kiss didn't think it represented dire straits for Australian rugby.
"I think you've got to just recognise that the Kiwi teams have been in pretty good form most of the year," he said.
"We've certainly been improving week on week and and we went hammer and tong today and just a few moments that they profited on.
"I think the comp's still in a good place."
Missing further finals at least gives the Wallabies extra time to prepare for the first Nations Championship Test against Ireland in Sydney on July 4.
They then play France a week later in Brisbane followed by Italy in Perth to round out the first block of internationals.
The Australian squad is likely to be named next week, with a number of players in good form including Reds flanker Fraser McReight, Test captain Harry Wilson and scrumhalf Tate McDermott, who has impressed in three games since recovering from hamstring surgery.
McReight, the Queensland captain, paid tribute to Kiss despite the coach being unable to help them lift any silverware in his three years in charge.
"He's been huge - all the senior players are probably playing the best footy under Les and that's no coincidence," the No.7 said.
"He's someone who cares so much about individuals and about this team ... he's been great for us and personally great for me and my leadership development and my playing development.
"I know there's a lot of other boys who can attest to that."
