Coyle felt disappointed with the result after the match but was proud of his side's effort in north London.
"Arsenal scored two goals from their two shots on target," he said. "They never had another shot on target.
"We scored a very good goal to put us in front and looked to be the team in the ascendancy. Then, from my end, the disappointing thing is as good as Arsenal's finishes were, they could have been avoided.
"I thought Arshavin should have been closed down and we paid a heavy cost for that.
"Then we gave the ball away cheaply and got punished by Park with a sublime finish.
"From that moment on it was waves of attacks and not just that but clear goalscoring opportunities. We should have buried them, we never did and now we're out of the cup because of it."