Darkprinny how old are you? I'm guessing around 30? Please do correct me if I'm wrong! I'll give my views, they are going to differ somewhat :E
Freedom of speech, NHS etc - all good, agreed!
Government - Does it's best. We've just had one of the most stable governments (on the whole) for a generation. Labour haven't done as much as they should have but theres certainly no grounds for accusing them of hating everyone. They've tried there best and, overall, they've done "ok". They will be remembered as a missed opportunity though.
Cost of living - A problem for EVERYONE without a good job. Not just "foreigners".
Geo political forces - We're not torn. We're in bed with the Americans. We simply pay lip service to Europe as they are one of our traditional interest zones and we need the EU for trade. (To an extent..)
CHAV's and racism - It is kind of true that racism gets taken too far. For sure polticial correctness is a problem. It certainly does feel like SOME black people use racism in England as a defence when it's not justified. For example, recently on Big Brother that girls got evicted for racism. Despite the fact that whilst she used a racist term it was not said in a racist manner - i.e. to portray predjudice in a nasty way against people simply because of there race.
Nationalism - A very, very, very minor problem. In a few areas where the so called multi cultural society is in breakdown the BNP have limited success. Let's not kid ourselves though - it's extremely limited. In fact, the whole press charade against the BNP every time it rears it's head is hard evidence that nationalism is not a problem. The backlash is always quite severe. As for UKIP and Veritas they may have nationalist tendancies but they are not racist. Wanting to bail out of the EU and close the doors to immigrants is not racist, though it is often interpreted to the contrary.
Overall we're very lucky to live in England. We have one of the highest standard of livings and quality of lives in the world. Sometimes people need to step back and look at what they do have rather than just what they don't.