I just wouldn't say Baines is a much better defender. Nani did tear Cole a new one this season, but that so rarely happens. I think Cole has been better than people have made out, this season. Although Baines, this campaign, has been better.
I think the other reason Terry was popular was his style caught the eye of the English fans. Blood and thunder, big challenges and admittedly, a very good captain. Carvalho was more intelligent, read the game better and often cleared up the mess Terry left.
I thought Ferdinand got a raw deal from fans when people considered his and Terry's England partnership. Rio, for me, was far better at 2006 World Cup, yet Terry somehow made team of the tournament. Same goes for 2008 CL team of the season.