Actually I've been more aware of the opposite problem this time around, at least based on the posters on the caf.
They actually have one of the best squads in the tournament, while also having an easy run of games to the final and a lot of games (including the final) at Wembley. They were rightly among the favourites before the tournament started and have better players than every team they've beaten so far. And they have better players than Italy in quite a number of positions too. This time (unlike several others, including the last WC) they should be thinking they're going to win the tournament.
Yet (because of their history of failures) I think in a lot of cases they've been overly generous in their tolerance for some of the decisions Southgate has made, simply because they're actually progressing past these teams they're already better than. Decisions like benching Shaw for Trippier, starting Grealish on the bench and persisting with a Rice/Phillips midfield that doesn't work has hindered them far more than it helped. You could possibly add more marginal calls into the mix too, like Sancho barely featuring. But because they're happy to be where they are, they're not as quick to see that they have the potential to be better than this under a better manager.
If Italy are better than them in the final it isn't going to be because they have a better squad of players, because they really don't. It'll be because their manager has done more with his collection of players than Southgate has with his, despite England having progressed to the final.