For me, Italy's problem starts with the children Now, children only want to be on their electronic devices and sports, If their parents don't take them along or encourage them they won't be able to develop it like before I don't think it's just in Italy, now this is a worldwide problem That's why children's education must be comprehensive, so that countries around the world have good representation in football.
I will have to agree with you that children now prefer to use gadgets rather than engage in physical activities. They will choose to play football in computer games rather than go out to the pitch and engage in physical activity. But this might not be the problem with the Italian national team. Everything in life will have a downtime. The Brazilian national team is also facing a transformation stage because they are not as effective as before. After this time, if certain measures are put in place, the Gli Azzurri will regain their position in world football.
For sure kids barely play outside anymore but that is not the only reason otherwise why is Brazil so bad as well? Brazil is not a rich country, I don't think that the majority of the Brazilian kids spend the days playing on a smartphone, and yet the "stars" are players like Vinicius, Rodrygo, Raphinha... All players that 20 years ago would have never played for the Brazilian team because I am pretty sure that nobody, and I repeat nobody, would ever choose Vinicius, Rodrygo and Raphinha over Ronaldo, Rivaldo and Ronaldinho. It's like choosing between a Ford and a Lamborghini.