To me the problem lies more on the technical abilities of the English players than the direct style they employ. The likes of James Wilner and Ashley Cole are not comfortable on the ball and CAN'T play the intricate passing game. Yeah, they both play for top English teams- top English teams that have lots of skillful foreign players.
If you look at the top European teams like Spain and Germany, they are both skillful and physical. England are falling behind and have been like that for a long time.
As an England and West Ham supporter it was really sad for me to see Diamanti score the penalty to send England home. Here is a player that we couldn't wait to get rid off for NOTHING ( West Ham agreed on a fee of £1.8m but so far haven't received a penny yet). Not good enough for West Ham but good enough for the Italian national team? That says it all about what we value. Until that changes England will always go home around this stage of any competition (or earlier).
Some people suggested that England played like the old Italian team? You might be kidding me!