Simple way to avoid this, have a tribunal to review matches as they do in Aussie Rules football. If a player is caught deliberately diving, ban them for life.
If everyone is wondering why the USA does not get into soccer, it is because the blatant cheating makes it a joke. It is not a real sport, and never will be, when one dive can win a game for a side, and have a player sent off. Americans have a sense of fair play, that will never accept this.
Of course, this would never get through. South American, Italian, Spanish and Greek clubs have to much sway over FIFA.
I am German and have lived in England and in neither country I have seen a lot of enthusiasm for video refs or more severe penalties. Generally, people enjoy the unpredictability of the game.
In the NFL there is generally at least one hold on every play that goes uncalled. Far from offending our sense of fair play, we accept it as part of the game. Basketball is actually strategically centered around fouling and drawing fouls, charging players under the hoop and assuming their feet aren't set, which they usually aren't. These are perfectly accepted aspects of the sport. I hate the diving in soccer, but the push and pull of what the referee will allow you to get away with is a large part of every sport.
Don't get me wrong; I disapprove of the diving and misconduct.
But I am utterly unconvinced that in-game replays will make a difference.
In fact the main problem is the culture of footballers. Go back a few years and things are a whole lot more brighter. Men were men :D and the rules were the law. You are right; strict punishment for cheating would help fix that. Setting limits for player wages and so forth as well would be an important idea.
If everyone is wondering why the USA does not get into soccer, it is because the blatant cheating makes it a joke. It is not a real sport, and never will be, when one dive can win a game for a side, and have a player sent off. Americans have a sense of fair play, that will never accept this.
Of course, this would never get through. South American, Italian, Spanish and Greek clubs have to much sway over FIFA.