From an outside perspective, I don't think England's problem is necessarily a lack of talent. Granted they don't have as much as Germany, Argentina, etc. but they are more talented on paper then many of the teams that have made it to the round of 16/quarters. There's enough talent on that team to go far.
Don't know whether the players don't care or poor coaching, but watching England the past 5-10 years you can kind of tell they're just not ... clicking? There's something missing. I think it come down to a combination of player apathy and media pressure on the coaches. Debate Hodgson all you want but England has had some good coaches over the past few years that have never seemed to work out, I think a lot of that has to be on the media.
Just my opinion, not trying to have a go or anything.