Exactly. He's gone about things the right way.
In terms of team selection, I actually would like to see him select Abate next time.
I've always liked the way he has set up his teams to play but had reservations he could relay it so quickly to the national team. Still, there is a lot of work to be done and it doesn't mean an awful lot in terms of a tournament. One bad game or killer loss and everything becomes much harder, you can go out at anytime.
He is quite fortunate in some respects I guess, he has been blessed with as good attacking options as Italy have had in a while. It's not so much the individuals but the fact they suit his style of play. Cassano may or may not play all the time for his club but you know he will enjoy playing for Prandelli's Italy. Rossi suits it, Balotelli, going down to guys like Di Natale and Quagliarella. Less so for Pazzini and Matri maybe, but they are different options. The heralded son Giovinco as well, it has clicked into place in that respect.
In midfield Pirlo pulls the strings in what would otherwise be short of world class names - maybe De Rossi aside at his best - but Montolivo looks at his peak under his old mentor, any of the Italy midfielders with a bit of class and technique revel in the style of play. The short passing, triangles and lay offs.
The defense doesn't need to be spectacular, Chiellini might be a brute but he's not a donkey, he's top class and has a competent and more stylish partner, and the fullbacks try to ensure they do more running towards the opposition goal than their own. Italy has enough willing fullbacks who can get up and down the pitch to complement the system. They don't have to be top class individuals, I've seen Maggio, Criscito and Balzaretti all look excellent playing in this team and system against both mediocre and top class opponents now.