I am not surprised by the result given how poorly the Italians played and they were lucky to quality IMO, and had it not been clinical Gilardino finishing in the Preliminary rounds, they would have been knocked out.
The worrying thing for the Italians should be IMO, the lack of midfield strenght throught the squad from Azzurini to NT. Palombo, Donadel, IMO arent going to cut it at the top international level with their lack of technical ability, awareness and passing, and time and time against Azzuri's is going to be punished in this area. Mascherano was a rock in the midfield throughout the tournament, and I like his versatility comfortable both as CM and right hand sided player. Luis Gonzalez, as Stuart mentions, seem to be solid all-rounder, with some pace. And the main difference was that Argentina had players who can create when they have the possession. Everything seems so natural for them, fast-tempo one touch football, and yet having awareness to find team-mates. It helps when you have Tevez, D'Alessandro, Cesare Delgado, Saviola, et al. in the final third.
In the end, better use of possession, greater technical ability, clever movement up-front, and clinical finishing, Argentina IMO is superior than Azzurini in every single department. Europeans should be worried in the next WC IMO, given the standard of Latin Americans (Paraguy is a very good team with outstanding forward in Cardozo) and improvements in Asia and Africa. Europeans bar France, and Portugal, IMO, doesnt seem to be comfortable with ball and has to get better.