This has got to be the worst performance I've ever seen in my life from Italy. What a shame, what a clueless game. I will tell you what was wrong in my opinion.
The Formation
The back four was a real big drama. Knowing that the Netherlands have fast creative players like Sneijder, van der Vaart, Kuyt and even Van Nistelrooy, Donadoni plays with Panucci (35). I don't know in what year Donadoni lives, but Panucci can't compete with fast players like the Dutch attackers. He's slow and old, he doesn't add any value to the team (yes maybe experience, but haven't we got already of that?).
Playing Barzagli was the biggest mistake he ever made. Donadoni MUST be playing too much Football Manager, Barzagli just sucks. I can't say nothing about Materazzi because he was a joke today, although I would keep him at the back line. Zambrotta's days on the left wing are over. He lost some of his speed and give this man a fucking role, LEFT or RIGHT. Don't switch him constantly, he's not 20 years old.
Here it comes, the midfield. This was probably the worst midfield formation he could have made. Ambrossini WHO?! He plays an AC Milan midfield. Just don't get me started about AC Milan's season and why they bought Flamini. Camoranesi on the right is cool, but give the man a fvcking free role will ya? He's been dominating Italy the whole season or something?. Doesn't Donadoni watch Serie A or something?
Attack. I don't think I have to say that EVERY CLEVER THINKING man would play Del Piero. Ofcourse Di Natale is good, but he is NOT Capocannoniere, and probably the best Italian striker of the season. And than changing Del Piero for Di Natale doesn't really add anything when you're behind with 2 goals. Toni was a ghost, I hope he realizes that. When the ball was in attack, there was no midfield to support them
The Next Game
This is what has to be done. Play Grosso on the left side, and give him the free role to run across the pitch. The only reason that he failed at Inter is the fact that Inter is the most ugly club at the world and he was limited in his attacking ability. Central defenders should be Chiellini and Materazzi. No doubt about it, Chiellini is THE talent from Italy, not Barzagli (who?). On the right side it should be Zambrotta, with limited attacking options because on the right side of the midfield there should be Camoranesi. He needs a free role and walk wherever he likes to (just like he does at Juve). The other midfield roles should be Pirlo, maybe Gattuso or De Rossi. I'd try De Rossi first because he is hungry for such a tournament. On the left attacking side it should be DEL PIERO. Capocannoniere has surely prooved his worth and Donadoni is an idiot for not picking him. Central Toni, on the right it should be either Cassano or Di Natale.
Conclusion
4-3-3
Buffon
Zambrotta - Materazzi - Chiellini - Grosso
Camoranesi - Pirlo - De Rossi
Cassano - Toni - Del Piero
4-4-2
Buffon
Zambrotta - Materazzi - Chiellini - Grosso
Camoranesi - Pirlo - De Rossi - Gattuso
Toni - Del Piero
ps. If we played with our current Juventus squad, we could've won this game. Even Molinaro would look great. Donadoni is truly an idiot, I apologize for saying the truth.