France denied Wales the opportunity of such a showdown in a game highlighted by the 18th minute sending off of skipper Sam Warbuton.
"It was massively disappointing," he said. "When I'm old and grey sitting in my rocking chair I'll look back and say yeah we done well but it was it a missed opportunity not to come home with a gold medal.
"I mean particularly looking at how the final went- the All Blacks were there for the taking.I just think had we have gotten into the final, given the size of our team, we could have matched them.
"To be going into a game where your team is bigger that the All Blacks is very unusual, bar South Africa it just doesn't happen."
"I felt with having three backs over 105 Kg's, had we come up against the likes of Conrad Smith, Nonu and potentially Sonny Bill we would brought it to them- it would have been a great match up."
Edwards has no doubts that Warbuton, who has since stated Alain Rolland made the correct decision, will re-emerge as good a player as the one that was on display in New Zealand.
"I'm sure he'll bounce back, he's a resolute character and an outstanding leader. Sam leads with actions not words. I remember 12 months ago thinking to myself this guy is going to be a superstar and the world now knows of Sam Warbuton," said Edwards.
"I mean I think South Africa was the game that did it, Sam made six or seven turnovers to Brussow's one and that's phenomenal. Brussow is one of the most highly respected backrowers in the game- it was just an awesome performance."
Edwards' break from the game didn't last long as he was soon putting Bradford & Bingley through their paces in a special coaching session organised through Puma.
"I've come down to coach a bit of grassroots, I think it's important.I'll tell you one thing about these lads they don't half lack enthusiasm,they just rip into each other on the park and that's what you want to see," he said.
Edwards steered London Wasps to four Premiership titles, two Heineken Cups and was part of the coaching staff at Wales when they secured the Grand Slam in 2008.
He is currently the hottest property on the coaching market and at a time where the World Cup winners New Zealand are looking to replace Graham Henry and the RFU are undergoing a mass review the rugby world is rife with rumour about Edwards' future.
Edwards gave little away, stating the fact that he is a free agent and open to offers whether it is club or country but he did make one statement that will be of interest to British rugby fans.
"I have a totally open mind but a really, really big goal of mine is to win a Lion's series. I want to be involved in a winning tour, we came so close the last time but it's a massive ambition of mine."