Brazil in 2002 won seeing the top 4 favorites out by Round of 16, Argentina, France and Portugal in the Group Stage, Italy in R16 + Spain was at least on par with them to win, they hardly qualified for the tournament itself, they are paying their dues now, nothing bad about it.
Brazil had R9 (Ronaldo), Rivaldo, Ronaldinho, Roberto Carlos, Cafu back then.
That team was 10 times better than current Brasilian teams.
About other teams getting knocked out, WC was in Japan/Korea.
"A strange" climate is usually an answer.
In those circumstances, majority of European teams play like a crap and are confused, outplayed and outrun by random African/Asian/South American teams who are more familiar with that climate.
European teams usually play awesome in "a classical" European climate, when Euros and World cups are held in France, Italy, Germany, Spain, England, Austria and similar. When they are "at home".
It can't be a coincidence that European teams always win Wcs held in Europe, and whenever a World cup is on some other continent, European teams fail miserably:
Wcs held in Europe:
1934 Italy: winner Italy
1938 France: winner Italy
1954 Switzerland: winner Germany
1958 Sweden: winner Brasil **
1966 England: winner England
1974 Germany: winner Germany
1982 Spain: winner Italy
1990 Italy: winner Germany
1998 France: winner France
2006 Germany: winner Italy
Wcs held in South America/North America:
1930 Uruguay: winner Uruguay
1950 Brasil: winner Uruguay
1962 Chile: winner Brasil
1970 Mexico: winner Brasil
1978 Argentina: winner Argentina
1986 Mexico: winner Argentina
1994 Usa: winner Brasil
2014 Brasil: winner Germany **
Wcs in Asia/Africa:
2002 Japan/Korea: winner Brasil
2010 south Africa: winner Spain
From 10 Wcs held in Europe, European teams won on 9 out 10 occasions.
From 8 Wcs held in South/North America, South American teams won 7 out of 8 times. Europeans won only 1 time.
So, about Brasil from 2002, it was easy to predict/expect that majority of European teams will fail miserably in a strange Asian climate.
Further, about current Olympic team Brasil, their plays are actually even worse when we consider that they are a host team, that they play in a familiar climate, and how European teams usually have huge problems to adapt to South American climate in such a short period.
Further, slightly offtopic, but when people are talking about Messi, WC in 2018 will be held in Russia.
Since non Europeans won it on a European soil last time in 1962 (Pele's Brasil in Sweden), I don't have any hopes for Messi and Argentina in Russia 2018' except more misery for Messi.
On the other hand, in Kuwait in 2022', you can again expect insane problems for majority of European teams in such a climate.
And much bigger chances for Brasil, Argentina, Uruguay and random African/Asian teams (with some luck in a draw).