It is hard to see England overcome Brazil even if they were at full strength with Steven Gerrard, Frank Lampard, Rio Ferdinand, John Terry, and Glen Johnson given how the Brazilians moved with ease around the pitch. Meanwhile, the English attack was barely able to make a dent.
Fabio Capello probably knows by now that Brazil is the team to beat. Extrapolate that to a potential Brazil vs Spain match up and Capello much prefers Brazil because Spain's Achilles heel is its defense. We saw some of that in Confederations Cup and unlike Brazil, Spain was unable to recover.
I think in everyone coaches mind except Dunga's there is a bit of a reality check going on. The drumbeat that next year might be England's year is going to quieten because in reality, the squad looks quite unsettled. Meanwhile Dunga's rebuilding is almost complete. Even in goal, traditionally an afterthought, Julio Cesar looks rock solid and rated amongst the best.