Davies became only the second Welshman after Gavin Henson to receive the prestigious award but was in a reflective mood after a second half fightback from England secured the title.
Wales had led 15-3 at the interval in Vannes, two tries from wing Ashley Evans and the boot of Davies doing the damage.
But they failed to muster any second half points as a revived England roared back into the game.
Jack Nowell and Sam Hill crossed for second half tries and with Henry Slade finding his kicking boots, England eventually secured victory.
“I’m absolutely gutted at the moment, the boys gave it their all but we’ve come off second best,” said Ospreys man Davies.
“Credit to England, they were overpowering in that second half. It’s gutting to get to the final hurdle and fall short but it’s about getting back for pre-season now.
“We played well in the first half but coming back out, we just couldn’t get into the game. We gave two penalties away which gave them field position and they ended up scoring. That was a huge factor.”
The final defeat ended what has been a superb tournament for both Davies and Wales, the No. 10 rewarded for his fine form with the coveted international award.
“It’s an honour to receive this award,” said Davies.
“To see the people who have been awarded it before me makes it really special. I don’t want to get too ahead of myself and I just want to get back into pre-season now and get on with that.”
Post-match, Wales captain Ellis Jenkins added: “It’s tough at the moment – obviously we’re very disappointed. I’m sure when we look back at the tournament there’ll be a lot of fond memories but at the moment it’s pretty tough to take.
“We had a genuine chance at winning the World Cup but unfortunately, England showed again why they are the best team in the world at this age group at the moment.
“They were just too much for us in the second half.”
With a comfortable half time lead, Wales had looked in charge against 14-man England. But when lock Dominic Barrow returned from a spell in the sin bin, his side were revived as they scored 20 unanswered second half points.
“England were too powerful for us in the second half. They had some big, powerful boys coming on as substitutes and they just kept coming and coming and coming,” added Jenkins.
“That would wear any side down.
“I’m extremely proud of all the boys for the way they’ve dug in throughout this Championship. We’ve exceeded a lot of people’s expectations but there’s still that feeling we could’ve gone one further.
“It’s tough but you’ve just got to get on with it and there are no excuses. We played as well as we could and England were just too good.”
