As they bowed out in the phase england failed to take advantage of their good luck.
Wayne Bennetts men had reached the previous four due to a helping hand in Wales amid a piece of controversy when Lebanon were docked points for fielding an ineligible participant.
But New Zealand, who cantered into a 22-6 win ended their hopes of silverware.
England began the tournament with a remarkable victory over Wales over the coming day but were heading after suffering a jolt 16-13 defeat in their second match on two.
By defeating the Lebanese 25-14 to get their first win of the competition, But, Wales came to their rescue along with England bounced back to the top spot in Pool B.
Then came news that Lebanon had been stripped of those points they playing with an Jacob Kiraz, accrued in their opening win on the French.
Lebanon coach Rick Stone, that stated he was unaware of changes to this rule, was made to leave out both Kiraz and fellow child Jordan Samrani for the rest of the championship but the Cedars managed to get on the top of England.
Sam Tomkins and acting captain Gareth Widdop scored attempts to get the England, who were subsequently forced to watch as Wales decided their destiny.
They had been energised against Lebanon and dominated the game from begin to finish, although john Kears men had earlier suffered a defeat by France, Regan Grace scoring their only try.
Mike Butt started captain Elliot Kear and the scoring touched either side of half-time to put Wales in control until Lloyd White wrapped up a convincing win with their fourth attempt.
That enabled Wales to complete the tournament though they fell behind early to a try from Alrix Da Costa and the result obviously lifted the spirits of England for the decider against France.
Blake Austin, ryan Hall and Ash Handley scored to give England a lead and the latter added a second in the second half, with Ryan Sutton and Elliott Whitehead also touching down in a contest.
In the event, the turning point came early on if winger Jermaine McGillvary had been hauled down short of the line after a break and the Kiwis struck on the counter-attack through Ken Maumalo.
There was no way back for England when Reimis Smith and Jamayne Isaako added both sides of half-time tries and, although McGillvary collected George Williams kick try, Isaako wrapped up the scoring.
We made it difficult for ourselves early in the tournament but we got to the
Finals, said half-back Austin.
Wed have liked to have done a bit better but we proceed on to Great
Australia, that beat Samoa 25-8 in the semi-finals, proceeded to become the winners thanks mostly to a hat-trick of attempts from Mitchell Moses at a 24-10 victory on the Kiwis.
The girls of england were outclassed on the next day as New Zealand went on to conquer Australia 17-15 at the closing.
Georgia Wilson scored the only try of England in a 42-4 conquer by the Jillaroos while Amy Hardcastle was around the mark in an 33-4 reduction to the Kiwi Ferns.