All this hate for Lyon is unfounded, Australia has no wrist spinners good enough for international cricket (they both barely cut it at shield level) and the other finger spinners have already failed. SOK is probably next in line for selection, and he is more of an allrounder, I don't rate his bowling that much. Micheal Beer may be useful in India, but I hardly see him being more successful than Lyon. Lyon has also shown the ability to contain and build pressure from an end, which results in wickets to both himself and other bowlers, anyway, he sings our victory song now.
If Watson thinks he can walk into the opening slot with a meager test average of 37 then he is wrong, although Cowan is inconsistent and averaging lower, he provides ideal counterpoint to Warner and he had success on the Australia A tour in winter. Watson could still bat at 6 though, provided he plays well in the shield, but without his bowling, I don't see why the selectors should be making him any guarantees.
Khawaja and Hughes both had successful county stints and were also prolific Sheffield Shield scorers, Hughes also had success in the test side,so both should be in the team. Maxwell should never be considered, as there are better candidates for batting and his bowling adds little to the team in English conditions, especially given both Clarke and Warner can bowl part-time. Although he could be handy at Trent Bridge (it turns there doesn't it, or am I thinking of Old Trafford?).
Joe Burns should be given a spot in the squad as backup, he played well in the A tour and has youth on his side. He has also shown recent Shield form and has the ideal technique for batting in England.
For the bowlers, Pattinson, Siddle and Lyon are certain starters, with Starc, Johnson and Bird fighting for the other spot. My preference goes to Starc, who has played in county cricket, but all the fast bowlers should be rotated anyway to help avoid injury.