Forget getting English players abroad, its the Domestic league that needs sorting out if we want the National side to progress.
The Premier League is the richest league in the world and rated second in the UEFA league rankings (Behind La Liga). But the fact it is the richest is, I think, its biggest problem. It all started to go wrong when Blackburn bought their way to the title back in 94/95, but its got much worse now. Its not just the top clubs that have to buy their way to success, virtually all the clubs have to spend obscene amounts of money each season just to stay somewhere near competitive. So we have a rich league and a host of teams willing to spend big money to get to the sharp end of it, the problem is lower league teams know this and they charge stupid amounts of money when a premier league comes knocking, result, players are bought from abroad. Look at current league leaders Arsenal, yesterday they fielded a squad with just 1 English player in it, Walcott, and sadly thats not rare across most clubs now.
So what can be done?
An introduction of a cap on foreign players is a must. Something like the system for player registration in the champions league would be a start (Next year the limit will be 8 must be Home grown, 4 of which must have come from the clubs own academy). All the Premier league clubs have academies that they spend vast amounts of money on and this would go some way to making sure they make good use of the players coming from them. BUT attitudes of football fans and the media would need to change for this to work. Currently everyone wants instant success from their clubs. Managers are losing their jobs after just a handful of games in charge. How can you build a team if you aren't given any time? No wonder managers buy "instant foreign talent" over home grown youth under these pressures.