Difference of opinion though. I, like many others have said, think England did not play to their strengths. And that can be said throughout the whole of the tournament. England's strength isn't their defence. England's strength is going forward: Kane, Sterling, Sancho, Grealish, Foden, Rashford, Saka. Chiellini said in the press conference those 'bench' players could have got England to a final.
I think what Southgate feared, and not quite in the same way you eluded to, was that our defence wasn't strong enough to win games unless we played with 2 defensive midfielders. By doing that, by playing Rice and Phillips, especially with 3 central defenders, is basically just letting the opposition have the ball, and time and again it has been proven that at International level you can not allow the opposition to have 60%+ possession. Southgate didn't react quick enough, just as he didn't react quick enough against Croatia in the world cup. I think he has done a good job, considering we lost to Iceland in the last Euro's. He has bought a sense of belief and pride in the national team. I do have my doubts though that he has the mentality to win a major trophy.
Italy were by far the best team last night, no doubts. But to say they would have ripped England a new one is well over the top! Yes they beat a poor Turkish and Swiss side easily, but struggled massively against Wales, struggled against Austria and Belgium. To be honest, other than the Semi-Final against Spain, Italy's run was no harder than England's. England got lucky with the Semi-Final draw.