England should be considered as a top8 team in the Euros, but a lot depends on the draw (group and then the knockout as well). Several teams have disappointed (like Germany), but i wouldn´t draw too many conclusions from these qualifiers. The season was very very long for some teams, they had a few days of a break now, then play some friendlies and Euro qualifiers after guys laid on the beach to have their season break. This gets out of hand somehow for several players. Germany rested some guys (Kroos, Neuer, Müller), because they played too many matches this season and of course could afford it vs. Gibraltar. I bet other teams do this as well.
About England: They can play as good as they want, nobody thinks they are dangerous as long as they don´t win anything or at least reach the semis. When you see starting XI with only 1-2 british players, something is wrong. Not that foreign players wouldn´t be good, but maybe the youth stables aren´t good enough to bring the players into the starting XI of their top teams. In Germany, it´s possible, too. And in the Premier League, teams earn way more money from TV, so the clubs could spend more on youths, i think.
About the national team and Euros:
They aren´t on the same level as the top teams: Belgium, Spain, Germany, Italy, France.
The next tier teams would include England, Netherlands, Switzerland, Portugal and Croatia.
Possible surprising teams could be Austria, Poland, Iceland, Denmark, Czech Republic, Slowakia, Russia, Ukraine, Bosnia or Romania.
Outsiders: Israel, Wales, Scotland, Slovenia, Northern Ireland, Hungary, Norway, Albania, Cyprus.
(Italic: Currently not qualified in Top3 of each group)
