Dude, it doesn't matter if Brazil was favourite or not, or if they packed it up (you don't pack it up on World Cups that are played once every four years, tbh. Especially not on a SF and much less at home), the matter is that you just don't lose 7-1 on football. Ever. Much less on the SF of a WC.
The worst team on the MLS could play that Germany team and in 99.9% of the time they wouldn't lose 7-1. The basketball equivalent of losing 7-1 in soccer, would be a score of 150 to 80, or something like that. It would be like the Pats losing the AFC championship at home vs the Steelers by a score of 70 to 7, only a millions time worse, because: a) you play the WC once every 4 years, not every year, and b) it was only the second time in history that it was played in Brazil.
This Brazil loss is easily a top 3 failure of all-time, imho.