Looking at the World Cup finalists over the last 20 years: (West) Germany, Italy, France, Brazil, Brazil, Germany, Italy, France, Spain, Netherlands. Other than Brazil, and they have a football history like no other country, there's hardly many "emerging countries" in there. I haven't compared stats of playstations sold by population for Germany and Holland compared to the UK, but I'm guessing it's not massively different.
Thus I don't think your point stands. Similarly I think your point would stand much stronger if the failure of England in football was also shown in other sports, but I don't think it is. Look no further than the Olympics as I've said before. Britain were third in the medal table in 2012, probably somewhat influenced by being the hosts, but you were 4th in 2008 and 10th in 2000 and 2004. Not comparable at all to the one semi final appearance outside the '66 at home World Cup results in the last however many years you have in football.
How come your "kids nowadays" playstation playing scoundrels could win you 29 gold medals in the London Olympics? Is it perhaps because an effort was made to improve the coaching and facilities in the buildup to the Olympics? Or look at the influx of good English cyclists in recent years, how come this is possible?
You do sound like an old man. Your opinions sounds exactly like the kind of excuse an FA representative would make (not that I've ever met one), it sounds exactly like the kind of tabloid reaction to a problem left unfixed for decades that is entirely unhelpful, but all to common to English football. What's more it sounds exactly like the kind of arguments old men have been making for centuries, usually wrongly.