No, talent IS the problem. England has a shallow pool of top-flight players (in truth, the talent pool for the country is smaller than that of the Netherlands, a country 1/14th England's size).
Ashley Cole is a great player. Who's his backup? When Terry and Ferdinand are out, who are the replacements? Chris Smalling? Feel confident about that? And who is the right back?
The midfield, outside of Gerrard, is short of attacking players with technical ability. Beyond Rooney and (sometimes) Walcott, who can score goals at international level?
England has a group of 9-10 proven international players. Beyond that are question marks and players who wouldn't sniff Brazil's 8-deep roster. England lags far behind other top nations in developing top-level players with technical skill. You compare England's talent pool with Germany, France, the Netherlands, Spain, Portugal, and Italy (let alone a couple of those countries in South America) and there is no comparison.