"I don't follow. Are you implying that "of England" is ... a prepositional phrase rather than a form of a noun."
"Kirsh, isn't, at some point, the distinction between the two an arbitrary one? Why not consider "of England", the spoken phrase (let's ignore the written language), a single word, /@ 'vIN gl@nd/ or whatever, the possessive form of the word /IN gl@nd/?"
The problem is that you then have to decide what to make of "of Merry Old England". If you can stick arbitrary words in between the parts, what's going on looks like syntax, not morphology. The alternative would seem to be to say that it's an affix if it happens to come immediately before the word it governs and it's a preposition if there happen to be any words in between, which is a pretty arbitrary distinction.
"Perhaps that's what Arjay is getting at. It's like that chicken and egg thing that you were recently discussing. You ... such a way that what was once a prepositional phrase can become a sort of inflected form of a noun."
True. The "a-" affix for verbs appears to have formed this way. And an affix can turn into a preposition or postposition, which is what appears to have happened with "'s".
Evan Kirshenbaum + HP Laboratories >Whatever it is that the government
1501 Page Mill Road, 1U, MS 1141 >does, sensible Americans would preferPalo Alto, CA 94304 >that the government do it to somebody
http://www.kirshenbaum.net/