Apparently he wasn't a particularly popular choice for England captain amongst the non-Liverpool and non-Chelsea England players anyway. He's fine at all the shouty-bawly stuff, but he's just too plain thick to understand tactics. Gerrard was the players' choice because he could at least understand the manager's game plan. You can just imagine the pre-match talk between Capello and Terry:
Capello: "Mr Terry, I want you to keep tight to the number 9. He'll come deep to win flick ons, so I want you to nip their attacks in the bud by following him and beating him in the air." Terry: "MERR MERR I AM NOT UNDERSTAND THE NICE SUIT MAN BUT HE AM WANT JT TO GO AND CHALLENGE MAN IN AIR JT IS SCARED OF CHALLENGE, MERR MERR I ARE SHOUT AT LADS NOW MERR MERR KILL"