Keep Capello. He has now experienced losing a tournament, he should be better capable of winning one. And it'll save millions to keep him.
We were very good in qualifying under Capello so we have to look at what was different between qualifying and the tournament itself. A number of things seem obvious!
If Capello is to be replaced, it should be with someone who has won a tournament - European Championships or World Cup - or at least taken a team to the final. And they should be able to speak English fluently. Maybe a German ...