To clarify, they have the current crop of players believing in themselves and performing to their potential. If their potential becomes unstuck in tests that's another conversation. ODI's are still held in high redard by the best teams in the world and if we're beating some of them then this team is succeeding.
In my opinion we are making ground in test matches but currently we will still be found out from time to time when our consistency is tested. If we can get to a stage where we win everything at home for a start I'll be happy. From there we can start to think about winning off shore.
T20 just fills a gap in the market - corporate/tv money etc - and is not worth discussing but is still essential for the growth and sustainability of the game.