I may be the only one but I still see England as a world class team. They've dropped some big results as of late but when they are at full strength (EURO 2004) they are a great team. They just have to tweak a few things.
You also have to consider that national teams play in tournaments with very few games. Being in form (Greece 2004), having some luck in draws (Germany 2002), or having home-field advantage (Korea 2002) can be much more important than having a great team.
If you look at the top teams, England is still one of them.