IMO there is no denying that the psycholical component was huge here. They absolutely self destructed against Germany (who, of course took advantage of this) and yesterdays game was basically useless for an analysis as it was crystal clear that they were in no state to play a good game mentally after that 1:7 and the early blunder yesterday.
Other than Oscar, no one knew what he was doing. They botched so many elementary things, you could make an instructional "how not to play the game" video out of it: They missed easy passes, went the wrong way in situations they´ve executed a thousand times over, stuff like that.
And then there was a guy like David Luiz who was basically doing his best crazy guy impersonation. Absolutely unfit to play mentally. He surely meant well and played his heart out, but over-motivated is putting it midly. He popped up in positions he had no business being in (even more so than usual, i mean

), tried crazy homerun-passes by the dozen, misjudged tacklings, went for the decicive interception all the time.
All that is not to say that the roster was all that good (it wasn´t) or that the tactics were up-to-date (they weren´t), only that it might have even worked without the loss of Silva/Neymar and/or had they managed to get the lead against Germany.