I watched a fair bit of the game. England scored twice in the last couple of minutes. Wales were okay but clearly a level below England. The Welsh didn't help their cause too much by dropping a lot of ball. Their one-on-one tackling was pretty good but they struggled to read what was happening when the English put in some decoys which could cause some issues against the Kangaroos. I'd think NZ would put 50-60 on them and Australia maybe 70-odd.
In terms of whether they should be there, I'm in two minds. They do struggle but unless they get games like this, they won't improve at all. Also they did have to qualify for the 4N. Also it balances the structure of the tournament a bit more - you can just play it over 4 weeks then. If there went back to tri-nations you'd have one team either not playing or playing some like Wales anyway.