1994 still hurts because the two best players, Baggio and Baresi, missed the penalties, and those two are amongst the few Italian players that are respected by almost every football fan in Italy, probably because of their character, they were talented, correct and unassuming, on and off the field, I remember Baggio playing while injured, at some point he couldn't even bend his right leg, it also hurts because many think that we could have easily beaten Brazil; penalty shootouts are a strange beast, "it's the rules" when you win, even if you still hate them, and "it's not fair" when you lose.
But Baggio did play during the 1998 World Cup, I think he was not a starter because Italy had Del Piero at his peak, but he played, and scored more goals (2) than Del Piero (0) - curiously, Del Piero was never able in his career to replicate his performances with Juventus with the National team, it was like you were watching two different players -, and Baggio didn't retire after the World Cup, he still wanted to play for the National team but he wasn't called up for Euro 2000 and for the 2002 World Cup because, according to Trapattoni, he wasn't in shape after yet another knee injury - it's for the 2002 World Cup that Trapattoni said that if Baggio could have healed from his injury and perform well with Brescia he would have called him up, but he didn't call him up, notwithstanding his great performances towards the end of the season -, even though he was playing for Brescia, scoring goals while being the leader of his team. He kept playing until 2004 when he retired.
He always had a plethora of injuries and surgeries, he's so banged up that, I read in an interview, his knees are so bad he can't even play soccer with his grandchildren, he can't even take long walks; and sometimes coaches didn't like him because they didn't know how to use his skills in a football that was tactics first and talent second.
He was an amazing player, probably the best Italian player of all time - some say Valentino Mazzola was better than Baggio, even if Mazzola's career was cut short by the Grande Torino's plane crash, but there are only a few films of Valentino Mazzola, so I don't really know -; had Baggio had less injuries we would be talking about one of the best in football's history, like with Ronaldo - Brazilian Ronaldo, the strongest player I've ever seen playing, a real monster, but, again, I was a baby when Maradona was at his peak - they both had their enormous talent tainted by way too many injuries.
I remember I had Baggio's life size poster in my room - I was a child and he looked like a giant -, and was devasted when he left, especially because he went to Milan, for a while I thought about starting to support Milan because he was with them but, as we say here, you will change women, but you don't change your football team.
