"He was probably the star of the test match in Port Elizabeth. It speaks volumes that he can get himself into that state to play at that level in that period of time."
Assistant coach Wayne Smith was similarly impressed.
"To me he was the dark horse. He was the one that I probably wasn't counting on as a selection prospect," he said
Dagg's remarkable recovery from injury - and ability to cover wing - forced the exclusion of Hosea Gear, the standout wing on last year's Grand Slam tour of Britain and Ireland.
Illustrating the virtues of versatility in the outside backs, Zac Guildford is the only specialist wing selected - on the strength of his superior work rate.
Although Henry has rolled out the most seasoned All Blacks squad ever assembled, experience was not essential when the back three calculations were finally solved because France-bound 45-test finisher Sitiveni Sivivatu was the other contender squeezed off the flanks.
Toeava and Kahui also justified inclusion as wing and midfield cover despite playing in an error-prone back division while in the forwards Liam Messam, who started at No 8 against the Springboks in Kieran Read's absence, was the other notable casualty from the original Tri-Nations squad.
Messam failed "to tick all the boxes" against South Africa, according to Henry, and has been usurped by Vito, who replaced him for the finals 11 minutes at Nelson Mandela Bay Stadium.
Premier prop Woodcock's return from a long-term foot injury was enough to snare the specialist loosehead's role at the expense of Wyatt Crockett while Anthony Boric has been selected on trust as the fourth lock ahead of his return to provincial rugby on Friday night.
Henry was impressed with Dagg, Toeava, Kahui and Woodcock's calmness under pressure in Port Elizabeth.
"They had not played virtually any rugby at all for three months, their selection was on the line in that game," he said.
In contrast, Colin Slade has mainly grim memories of his first start against the Springboks but was retained as Daniel Carter's understudy although his performance did prompt debate.
"There was a discussion but we believe he's got the allround skills required in that position," Henry said.
Henry decided not to pick a specialist No 7 to back-up captain Richie McCaw so the absence of a Matt Todd or Luke Braid ensured there were no debutants in a squad boasting 1133 caps.
Adam Thomson and possibly Vito will occupy the openside flank when McCaw is rested but if the inspirational leader suffers a tournament-ending injury a specialist forager will be summoned.
McCaw gave an assurance the foot injury that limited his Super 15 season was no longer an issue but he was otherwise unable to sooth the nerves of a rugby public yearning for the All Blacks' first World Cup triumph since the inaugural tournament in 1987.
One of 10 squad members who experienced the devastation of a quarterfinal defeat to France in Cardiff four years ago, McCaw was only hopeful this squad were capable of atoning for that blight on the All Blacks' history.
"A lot of us that were there last time, four years on we've played a lot more rugby and been through a lot more experiences," he said.
"That doesn't guarantee anything but hopefully when it comes down to it you prepare right so you go and perform well."
The All Blacks Rugby World Cup squad
Forwards:
Corey Flynn, Canterbury
Andrew Hore, Taranaki
Keven Mealamu, Auckland
John Afoa, Auckland
Ben Franks, Tasman
Owen Franks, Canterbury
Tony Woodcock, North Harbour
Anthony Boric, North Harbour
Brad Thorn, Canterbury
Samuel Whitelock, Canterbury
Ali Williams, Auckland
Jerome Kaino, Auckland
Richie McCaw, (capt) Canterbury
Kieran Read, Canterbury
Adam Thomson, Otago
Victor Vito, Wellington
Backs:
Jimmy Cowan, Southland
Andy Ellis, Canterbury
Piri Weepu, Wellington
Daniel Carter, Canterbury
Colin Slade, Canterbury
Richard Kahui, Waikato
Ma'a Nonu, Wellington
Conrad Smith, Wellington
Sonny Bill Williams, Canterbury
Israel Dagg, Hawke's Bay
Zac Guildford, Hawke's Bay
Cory Jane, Wellington
Mils Muliaina, Waikato
Isaia Toeava, Auckland