As they bowed out at the phase england failed to get the most out of their good luck.
Wayne Bennetts men had reached the previous four due to a helping hand by Wales amid a piece of controversy when Lebanon were docked points for fielding an ineligible participant.
However, New Zealand, who cantered to a 22-6 win in Sydneys Bankwest Stadium ended their hopes of silverware.
England began the tournament with a remarkable victory over Wales but were going after suffering a shock 16-13 defeat to Lebanon in their second match on two.
By defeating the to obtain their first win of the contest But, Wales came along with England bounced back with a 38-4 rout of France to clinch top spot in Pool B.
Then came news that Lebanon had been stripped of those things they accrued from their opening win on the French for playing with an under-age Jacob Kiraz.
Lebanon coach Rick Stone, who said he had been unaware of adjustments was forced to leave out both fellow child Jordan Samrani and Kiraz for the remaining portion of the tournament but the Cedars managed to get on the top of England.
Sam Tomkins and acting captain Gareth Widdop scored attempts to get an England, who were forced to watch as their fate was determined by Wales.
They were energised against Lebanon and dominated the game from begin to finish, although john Kears men had suffered a defeat by France, Regan Grace scoring their only try.
Mike Butt opened captain Kear and the scoring touched either side of half-time to place Wales in hands until Lloyd White wrapped up a convincing win with their fourth try.
That allowed Wales to complete the tournament and also the outcome lifted Englands spirits to the decider from France, but they fell behind early to a try from Alrix Da Costa.
Ash Handley, Blake Austin and ryan Hall believed to give England a period lead and the latter added in the second half, using Ryan Sutton and Elliott Whitehead touching in a competition.
In the semi-final, the turning point came on if winger Jermaine McGillvary had been hauled down short of the line and the Kiwis struck during Ken Maumalo.
There was no way back for England when Jamayne Isaako and Reimis Smith added additional tries both sides of half-time and, though McGillvary collected George Williams kick try, Isaako wrapped up the scoring with his second attempt.
We made it difficult for ourselves in the tournament but we got into the
Finals, said half-back Austin.
We would have liked to have performed a bit better but we move on to Great
Australia, who beat against Samoa 25-8 in the semi-finals, went on to become the winners thanks from Mitchell Moses in a triumph on the Kiwis to some hat-trick of attempts.
As New Zealand went on to beat Australia 17-15 in the closing englands women were outclassed on the day.
Georgia Wilson scored the only try of England in a 42-4 defeat from the Jillaroos while Amy Hardcastle was on the mark in a 33-4 loss to the Kiwi Ferns.