jno jnr's analysis is that Fabio comes from the Italian leagues, where they're all very defensive and 1-0 is a standard score. He also hauled a lot of ageing players out of retirement rather than seeking out new blood. He said he valued experience, but the only experience any of them have ever had in world cups is losing. The Germans on the other hand were all very young and eager and ran rings around them.
I wouldn't know, I was watching the cricket instead, where - though nobody seems to have noticed it - England have just thrashed the Aussies three times in a row and won the series even though there are two more games to go. So there's reasons to be cheerful, part 3, with parts 4 and 5 still to come.