I think the 8 Italy offsides had a lot to do with that more than anything, total lack of focus and discipline on part of the Azurri there.
Agreed. Every linesman knows the Italians are the biggest cheats in the World Cup; therefore they are not about to cut them any slack on offsides calls. Knowing this the azzurri should have played differently, not relying on long balls to overmarked forwards. Dummies.