England is currently the favorite to win the 2018 Wold Cup bid. I think the only other bid that has a shot will be Spain/Portugal. I think though that there are more supporters for England right now and that history of hosting it is more on their side. They are likely to win the bid.
England definitely has enough facilities to support a World Cup bid. The world cup also hasn't been in Europe for a few times, so it is a possibility for that reason as well. It think that England has a really good shot or possibly the US, just due to where locations were in previous World Cups.
The World Cup will not wind up being hosted by England in 2018. In reality, the country's bid will likely fall short, and another country will be selected for the honor. The World Cup should reach England again sometime in the near future, but 2018 is unlikely to be that year.
The competition in that group, as is the case for pretty much every group every year, is tough, but England has fielded a great team in the past few World Cups, and the right play in 2018 might clinche it. The training investment - and, more importantly, public support, will be important to decide.
FIFA has been all about bringing the World Cup to different regions of the world. In 1994, it was the United States. In 2010, it was South Africa. In 2018 and 2022, the World Cup will be hosted in countries that have never had such an event before. After Qatar hosts the 2022 event, the 2026 version will probably come back to North America or perhaps the Caribbean. Now that the world-class event has spread around the globe, England could probably host another World Cup in 2030.