I wouldn't say that physicalism fails to explain consciousness; it is just not clear how physicality brings about consciousness. A posteriori methods only supply probable conclusions, and the scientific method is a relatively slow process. There are many false ideas that science has demolished over time; even those concepts that people once thought could not be viewed any other way. Think of how much we've learned in the last two hundred years regarding gravity, subatomic particles, light, energy, thermodynamics, neuroscience, depression, mood disorders, and pain management. So I believe it's a little hasty to think dualism already has won the day. Additionally, just reading the literature on mind reveals that dualism has not fully explained consciousness either. Dualism only gives possible explanations for how mind-body interaction might work or it supplies potential explanations for what brings about conscious states? I don't know of any study that has shut the book (so to speak) on these questions.
My understanding about C-fibers is that they only partly tell us how pain works: much more is involved in pain sensations than C-fiber stimulation and the transmission of pain. For example, joint pain (gout or osteoarthritis) seems to be clearly brought about by physical factors--this kind of pain can be explained by strictly physical factors (inflammation of joints, depletion of cartilage and lubricating fluid in the joints or a buildup of uric acid, as the case may be). When someone asserts that mentality translates physical inputs into pain, he/she is making an assumption that the mental is somehow qualitatively different from the physical. However, that is yet to be proved.
1) I respectfully disagree that Jehovah's existence rules out a world of matter (a purely sensible world) that he could have produced to stand over against the spiritual realm. It's possible to have a world like ours completely governed by the laws of physics, then have another realm that differs qualitatively from the material sphere. I reiterate that the type of physicalism I'm talking about is restricted to the material universe and the human sphere. My version of physicalism also does not rule out divine or angelic activity.
2) Free will remains a mystery for dualists and physicalists alike. Dualists usually appeal to some immaterial faculty to explain free will (a soul or immaterial spirit), but the immaterial faculty proposed by dualists raises new questions along with how this faculty is supposed to interact with the physical world that includes brains and bodies. We also know that genetics, environment, brain chemistry and wiring, upbringing and other factors shape and condition our decision-making abilities. But dualists assert that free will emanating from a non-physical "thing" (res) is supposed to override all of these factors and act outside of the universe's causal continuum. How exactly does it all work? Furthermore, an immaterial faculty does not guarantee that we'll have free will since the spirit/soul itself could also be fully determined by God or some other agent.
3) Supervenience or some kind of physical theory is the most likely explanation for "mental" phenomena. Think about it. We have reduced water to H2o, heat has been reduced to "energy in transit from a high temperature object to a lower temperature object," and sound is "a mechanical wave that results from the back and forth vibration of the particles of the medium through which the sound wave is moving." If supervenience possibly occurs with all of these examples, then why does it not occur with consciousness? It's also possible to explain instincts, emotions, feelings, memory, and thinking in terms of brain activity. The one nagging problem (chiefly) is subjectivity. Maybe our nervous system and somatic input to the brain explains why we can reference things in first-person ways: reductionism or Christian physicalism cannot be ruled out yet.
4) Finally, physicists have not yet developed a grand unified theory or theory of everything that unites the quantum world with the macrocosm. Does that mean we will never understand how the subatomic world interacts with the cosmos writ large? Does dualism explain how it all works? Those still appear to be hasty conclusions for me.