I dont think Italy deserved to go through. They got lucky with the result in the Holand game. France were rubbish.
It's arguable if Italy deserves to be among top 8 in Europe with the way they played, but i think that the Italians completely deserved to come second in this group, hence they deserved to play in the quarters.
Italians played better than France and better than Romania. Yeah, they were extremly lucky with Mutu's penalty but they were the team that attacked all the time, the team that had the initiative, looking for the goal since minute 1 and of course, the team that did get robbed with the disallowed goal.
Congrats to Italy and the Italians. It will be very tough without Pirlo and Gattuso, against well rested Spanish first team, but even thoughthe Spaniards are favorites, i rate each team's chances at 50%.