I think England will become world no. 1 but they won't dominate world cricket like AUstralia or the West Indies did.
The reasons for their rise I think can be summed up in 3 points:
1) Good mix of players (batting, seam bowling , spin, wicketkeeping - all bases are more or less covered)
2) Very well organised and professional management/administration (
something I think that will hold back India despite their huge talent base ).
3) A number of players at or entering the peaks of their careers
(Strauss, Bell, Trott, KP, Prior, Swann, JImmeh, Tremlett). Makes for a solid core.
Could probably throw Onions and Monty there as well.
But to setup a dynasty, to be a truly great team you need something extra.
Truly special bowlers IMO definitely - you need guys who can take wickets in any conditions.
I don't see that kind of talent amongst England's bowlers. Someone could prove me wrong but I see them as being good rather than genuinely great.
TBF, the only special bowler in the world atm is Dale Steyn IMO.
Great batsmen would also help - possible that Cook could make the grade. Time will tell.
KP and Trott I feel will fall short.
Having said that, they may not match the feats of Australia 1999-2006 or be unbeaten for 15 years like the WIndies but I think England will enjoy a period of success over the next 4-5 years.