Crappy focus... why? Photography and Digital Camera

I took this pic at the weekend and I'm just really not happy with the way it looks - overall it just looks out of focus and a bit naff... I'm not just talking about the people but just the whole image seems soft.

I did shoot using the all points focussing option which I think was a big mistake, and have now switched on the red square on the LCD screen image so I can see if I've missed the intended focus spot... on this image it's on the guy in the grey top's hand.. however I would have still thought that at f/5.6 the DOF would have been deep enough to keep the people looking fairly sharp?

But then it's not just the people, the whole image just seems soft and crappy :mad:

I'm rubbish at group shots so can anyone give me advice on just what I did wrong? Or is it just the fact the focus point automatically selected was so wrong that it threw the whole image off?



EXIF:

ISO 125
f/5.6
1/200
26mm
Crappy focus... why?

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