Let's face it, even if Australia qualified instead of Italy, they would have been knocked out at this stage by Germany. Although Hiddink has injected a bit of tactical prowess in the team, the socceroos still lack the experience, flair and creative play of many European Nations.
I'm not taking anything away from them. I think they are really dedicated to their chosen sport and the penalty decision was unfair. However, it remains a fact that they still have to play catch-up with other countries because of the absence of a good league in their home country due to preference for an alternative sport.
Back to the topic of Germany, I think they deserved to be knocked out. I watched replays of many matches and can't help but notice how dirty they play. Players like Ballack Frings, Odonkor should have been fined for play-acting and disgraceful behavior on many occasions. The German player that stood out on overall package and fair play in my book would have to be Lahm. I think he has the maturity to be a future captain.
Italy played a smart game and gave the impression in the last 5 to 10 minutes that they were going to settle for penalty and the germans let their guard down. Even if they went to penalty, I do not think Italy will lose. Buffon has been excellent the entire campaign.