Southgate deserves credit for what he has done with England - but England are a poorer team now than in the last Euros with arguably better players. The route to this final was torturous, fortunate and against average sides until the final.
In the whole this is still a very young England team with supremely talented players and somebody else needs a shot at unlocking the talent.
Without ball-playing midfielders who demand the ball, dominate the play, and knit everything up, you'll always come up short.
I agree with your overall analysis, though. I expected England to make the final given the way the draw worked out. But when you are depending on a last-minute superhero goal to scrape survival against *checks notes* Slovakia and penalties to beat Switzerland, it's not a huge surprise when a swashbuckling Spain prove a step too far. England showed great resilience, but that was about it. The Dutch are currently poor, so the bitter truth is that when England finally faced a side that was objectively superior to them, they followed tradition and lost. It just happened to be the final this time - which is a comment on the state of European football at the moment and the luck of the draw.
Spain are covering a multitude with their thrilling performances this month. Very few good sides out there right now.
That said, two European Championship finals in a row for England is an achievement. But the failings against an ordinary Italy were the same failings tonight against an effervescent Spain: midfield couldn't cope with technically superior players from a culture that prizes the ball. Until that changes, it won't get any better than this.
I think England should be able to go deepish at the World Cup and have a chance at Euro 2028. But can the draws be as favourable as they have been in three of the last four tournaments? I doubt it. England have missed their boat - just as Spain threatened to tonight before sheer force of possession finally yielded their reward.
Commiserations to England fans.