There needs to be a step change from the past, but not a clean slate. We need to keep the best technical players, and those with a bit of wisdom. My twenty three suggestions:
GKs: Hart, Green, Robinson
No point keeping James, and I would explicitly make Hart the number one and give him an extended run in the side (even if he dropped clangers). Green (to rebuild confidence) and Robinson (experience) as cover.
Ashley Cole - best player in the world in his position.
Glen Johnson - yes, he needs to work on his defending, but the potential is there and he won't become accustomed to performing at international level without the exposure
This is tough. I'd be very tempted to leave Terry out, along with Ferdinand, King and Carragher - time to clear the decks a bit. Sadly, I can't see anyone else able to replace him.
Terry, Dawson, Micah Richards (also covers RB), Ryan Shawcross.
Owen Hargreaves, Lee Cattermole, Jack Rodwell, Barry.
Joe Cole (best technical player in the squad), Adam Johnson, Frank Lampard (I'd make him captain - a highly intelligent player willing to work for the team as a whole), Aaron Lennon, Ashley Young, Milner (also covers LB).
Rooney, Crouch, Gerrard, Defoe.