Do you really think so though? I've seen a lot of people say that the tactics were wrong and stuff, but no one has mentioned that you've got an awful record against the Italians. You just don't beat the Italians. I think there was a mental thing there more than anything else. Think of when England go to penalties or play someone like Portugal. You've grown up watching these games and your team lose all the time. It's in the back of your mind, and as a result, England can't win shootouts.
Having said that, I don't think Germany will win the World Cup, Spain certainly won't make it four in a row. I'm not sure about Brazil. I'd have them as favourites partly because it's in their back yard, but I'm not sure the quality's there in the squad.
It's not just about the result - any team can lose vs Italy in a semi. And I don't think history played a big part in that game. It's all about his particular decisions, because they shaped the game before it even started. For example taking out Klose and Reus who (especially the latter) had a great game against Greece and introducing Podolski and Gomez for them which ended up with Löw reverting his changes at half time (Gomez had little more than 10 touches at that point iirc). He also gets a lot of criticism for playing Kroos in that game, but I think that made sense.
Another thing which annoyed some people was that he played Schweinsteiger who just came back from a longer injury and supposedly said that he's not fully fit and wouldn't insist on playing.
Another problem is that the team tends to lack defensive organization and stability, especially the Khedira/Schweinsteiger pairing had some misunderstandings concerning who is going to play the more defensive part in certain situations.
And last but not least he's not very good in interviews, for example he sort of blamed Hummels for the loss against Italy in the post match interview and made some other thoughtless remarks in the media. Such as saying something similar to 'Schmelzer had a bad game against Austria, but there aren't many other players on his position, so I have to work with him for the next couple of months, however we will look for alternatives' which of course created a rather big media stir after which he relativized his statements.
Anyway.. btt:
I agree wth mutddjw, Belgium are overrated right now. To me they look like a solid tier 2 (as in below Germany, Italy, Spain, probably Brazil - who I would rank as tier 1), however from what I read they are supposed to be the dark horse for the title next year. Especially players like Vertonghen, Fellaini, Dembele, Benteke, Lukaku seem to be perceived a lot stronger than they actually are, because they play in the PL, so everyone knows theire name and most people probably have some great goal or w/e of them in mind when they think about them.