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The Soviets planned to keep on fighting even after Moskva (Moscow as traditional Russian pronunciation) was captured. They still had the oil-rich Caucasus which provided 90% of Soviet fuel, Archangelsk and Murmansk to receive aid, the western Urals where much industry have been relocated and out of reach of military actions, as well as Leningrad and Stalingrad (though both could have easily been taken if Moskva was conquered). The Soviets still had a sizable population to keep on fighting in the western Urals, middle Asia, and at the Volga.
Even if the Nazis did succeed I doubt that they were able to carry out Sea Lion. Remember, the original plans called for Rhein (Rhine) barges to carry out the landing. One can imagine their chances against Channel waters and the Royal Navy. Also their surface fleet was in shambles after raiding the Atlantic and the debacle at Norway. As of 1940, they only had 4 destroyers and 1 cruiser, entirely insufficient to carry out a landing. They also failed to achieve air superiority. By the time they got their navy and Air Force back in shape, the US and GB would have beaten them by numbers and industry. The so-called Nazi war economy wasn't impressive to begin with (the economy was barely mobilized with the level of consumer goods production as high as pre-war levels), brought down by corruption and power fighting between Goering, Bormann and such.
Your point about the impossibility of the Germans invading England is always overlooked when these 'what if' scenarios come up. It doesn't matter how big and how good your army is - unless you can teach them to walk on water, they still need a navy and amphibious capabilities. Look what it took for the Normandy invasion in terms of ships and landing craft. And the allies had control of the air and no surface navy to worry about.