I look at what a WC would bring to each nation after the competition is finished. In that light, Russia is a very good choice. Their domestic league has improved over the years. Top players are coming from the RPL, and they are doing well in Europe (CSKA, Zenit). New stadiums/training centers will give an already ascending league an even bigger boost.
From FIFA's perspective, it is a very smart choice. A large nation with a wealth of natural resources and who straddle 2 continents. Investing in Russia's footballing future with a WC is a smart way for them to expand their presence in a potentially very lucrative market.
The above doesn't seem to apply as strongly to Qatar, but money talks. These filthy rich Arabs have more money than sense, so I'm sure it will be a fantastic event for the fans.
As for England's failure, is it really a surprise? You cant expect FIFA to award you an event after a concentrated smear campaign (regardless of it's validity) against them. You signed your own death warrant.