You can't really compare the 1930s to modern day football.
I think Serie A not being as rich as the PL or even the La Liga or Bundesliga I think probably played a big part in them producing fewer world class players. They just fell behind as soon as money became a bigger factor in football than it used to be. If you look at the 1980s, 1990s, teams from all over Europe could be competitive in the CL, for example. Nowadays, that's impossible. Italy remained a top 5 league, but I think they most certainly suffered from it too. The big 3 (Inter, Juve, Milan) aren't as rich as they probably should be, and the rest of the league is even worse off financially. Funnily enough, the Super League would be hugely beneficial to both Italian and Spanish clubs, as they could actually compete financially with English clubs. As it stands, a mid-table PL team can probably outspend at least 15 Serie A and 15 La Liga teams.
However, performances at international tournaments aren't just a reflection of these issues. Overall, international football is way behind club football, so all you need is a good 13-15 decent players, a half-decent coach, a good team spirit, and if it clicks, you can win the Euros or even the World Cup. Italy themselves winning the Euros 3 years ago is a great example of this. Their squad wasn't anything special at all, and they won with fecking Roberto Mancini of all people...the guy who hasn't been at a big club since 2016 and his last club gig was Zenit. International football is mostly for managers on the decline who cannot cut it at the highest level of club football anymore. Except Nagelsmann, he shouldn't really be managing Germany, tbh.
The reason why Italy won in 2021 was not simply due to chance, but because we were tactically better.
You do not knock out Belgium, Spain and England in consecutive games due to mere chances.
The main difference was that we had a top team of coaches ... not just Mancini, Vialli was a part of it too, along with Sandreani, another name known in Italian football for having coached different lower rated italian teams.
Each of them had a connection with 1990 Serie A, just like Ranieri (only the dude who did the Leicester miracle).
The staff we had made all the difference.
Or Ancelotti, or even JM (who openly admitted he idolized Sacchi). Or Marcello Lippi, who won us the 2006 WC.
Italian football, by far and consistently through the decades, has produced the best coaches in the history of the sport.
At the end of the day, even if we were to lose the next 3 consecutive games against England, and the next 3 against Germany, and so forth against other key european nations .... our heritage is so high that we would still have a positive record against each of them.
Consider that, despite our having done very bad in the last 15 years in club football, we still have more European finals played than english teams.
Currently as it stands, and I believe that's undeniable, Italy is the historically bigger football country .... when no other countries has had such a good COMBINED history in BOTH club and international football at the same time.
Germany is just slightly ahead of us internationally, but they haven't played nearly as many european finals as we did.
England and Spain are on a similar level with clubs (and they were considerably behind, especially Spain, up to 15 years ago) .... but they don't even come close to us in terms of international wins.
Other than that, yes, yesterday we were shit.
I agree with the Croatian friend that it was very unlucky for Croatia ..... though I will say, if you don't win against Albania, and lose the other game, you need a more convincing display to deserve to go through after that.
And, for fairness sake, I will say we deserve to go out in the next round if that's how we play.