Portugal are a decent team. On paper, they have better players than maybe half of the teams who actually did get through (including the USA). If this world cup has taught us anything, it's the value of having a cohesive team.
That's why France are doing remarkably well - they have one or two good players, rest average, and left one or two others at home because of their egos. The matches I've seen I've been very impressed with the team's work rate.
Portugal and England demonstrate having a few good players simply doesn't cut it anymore. That England Italy game still rankles. Rooney murdered Baines all game - Baines had to fend off two Italians every time whilst Rooney stood hands on hips.