it is not like germany has bulk of their local players playing for the same club.
look at argentina for example.
let's face it. the core of the problem is that EPL has been so successful that expectation for England is very high. But unfortunately, there are too many opinions in England, especially the media, that tries to influence how the English team should be managed. That inevitably creates morale problem. Just look at the problems off the pitch. There is Terry and Bridege for starters. Then Ashley Cole. And now with the ongoing world cup, problems within the dressing room.
At such high level of competition, these little nitty gritty issues can be significant.
As for Capello's selection, there will always be somebody who says so and so is better.
In summary, Germany played their tactics well. They know England is going to come forward and be will hard hit when they counter. And sure enough, it brought 2 goals from the counter. The Germans are faster and more discipline throughout all department. Notwithstanding the disallowed goal, i think 4-1 is shows pretty well how pathetic England is.