It may, but regardless it's unfair on the whole team if the ref just says "Go on lads, foul him as much as you want."
I think both of you are relying too much on the refs' ability to get all foul/dive decisions right. We've got years of evidence that they can't. This is the way to go - there's simply no way that refs can deliver harsh instant justice for diving as they'd (a) get it wrong or (b) be scared off from penalising divers in case they get it wrong. Penalties afterwards may not help the team who was playing against a diver, but at least it would be the right decision 99.5% of the time. They just need to up the ante - one-game ban for a first offence, two games the next time etc.
yeah a straight RED ! it is cheating , nothing else . its not a mistimed tackle , excessive verbals ,lifting ur shirt in goal celebration , kicking the ball a fifth of a second after the ref blows his wizzole etc As for yellows they should be served at the time of the incident - like a sin bin