I don't understand how can people blame Donadoni for the bad time Italy has been having lately.
Granted he's not a good coach, but it was obvious, ever since the WC ended, that a decline will follow, no matter who's the coach.
All the world cup heroes were either in their 30's or their late 20's. There wasn't enough quality with the youth ( now there's a talented generation led by Rossi, Giovinco, Balotelli) but after Pirlo's generation (generation 1979) there weren't many quality players in every generation, as it was before.
Italy always produced great defenders but Cannavaro, Nesta and Materazzi are 35,32,35. Zambrotta and Grosso are also in their 30's. Apart from Chiellini, do you see someone who can replace these old players ?
In attack Inzaghi and Del Piero can not offer anything more. Toni is also in his 30's. It's normal for them to start playing bad. Do you see worthy subs ?
There is no replacement for Pirlo and Camoranesi. What about a replacement for Totti ?
Lippi or God himself can not make a world beating squad out of the players Italy has atm.
In few years when the youngsters will mature, i believe Italy will be a force again, but atm they aren't and it's not Donadoni's fault.