imo:

http://www.bbc.co.uk/programmes/p02191f7

I totally agree with him

Completely agree with him when he talks about the need to pick a balanced team rather than just picking the supposedly best 11 players.

He is right, Ive always liked players for systems. Sod the sexy names and team full of stars.
You want players who suit the system you intend to play.
Balance is the key.

It's similar to the Oakland A's Moneyball method.

I did not know that Waddle knew so many words

Well he's saying the obvious really. Don't think any manager is willing to gamble with their job security or credibility by playing untested or contentious players.

Ive noticed that no matter which player is mentioned for a position, he is always slagged off, Milner for instance, according to a lot of people he shouldnt be anywhere near the England team, but is he a better winger than Sturridge or Wellbeck which are two strikers playing out of position ?, are players playing regularly in defensive midfield better than Gerrard playing out of position.

Lets face it no one really has the answers, so all we can conclude is that big name players play out of position and let us down everytime. We should be building a team around our best players in their best positions. i'm not a fan of Rooney but if his best position to score goals is as striker, then play him there ahead of Sturridge, if Milner is a better winger than Sturridge then play him there, if this means Sturridge is on the bench because there isnt a role for him then so be it.

We have been using the square peg in round holes tactic for years and it doesnt work. Time we give players playing regularly in their best positions a chance before moaning.

England have been doing this for years - picking a star name and playing them out of position to get them in the team rather than a player used to playing that position. I remember a few years ago Pompey had Matt Taylor playing really well down the left-wing, and who was a player who could pass/shoot with both feet and he was touted as an England contender but never got picked as the England manager (Sven) preferred a star name like Gerrard out of position on the left, and we're still doing the same eg. Rooney on the left against Italy, rather than dropped and a proper left-winger played.

When has a manager who's got the sack had trouble walking into another job in less than 1 year/season ?

He is just reiterating what countless people have already said, it's not exactly incisive on his part