Problem is football has globalised and Brazil has changed in the way it develops it's players (most of who are developed for the European game). The current generation can't play the old Joga Bonito football and I think it's unfair to judge this group of players because of it. Italy can't defend anymore and instead is now a better possession playing side (the Costa Rica and Uruguay matches aside). Other nations (E.g. Holland with Total football and German efficiency) are also no longer in keeping with their traditions as influences from other nations come in.
I don't think this is a problem for these nations, even if I think places like Brazil and Italy should look back at their roots. I also think Brazil will return to developing more technical players with less focus on the athlete. I say this because in recent years, the shift in the European game has been towards more technically gifted players.
I'm often defending Brazil on the forums during this world cup and I think part of it comes down to the fact that people (me included) want to see the beautiful football of old, which as I said, this Brazil simply can't do. I also must admit that this group of players have my respect in the mental resilience they've shown, something seriously lacking at the last two world cups.