Pah! That's far too sensible! Besides, it would write off a huge chunk of Real Madrid's investmentHe's my solution to the diving problem:
Only address the worst cases, namely where there is absolutely no contact whatsoever. This is because it would be too hard to analyze the grey area where the is some kind of contact.
All matches are reviewed after the fact, looking for instances where fouls where given. If in the replay it turns out that a foul was given because a player went to ground when there was absolutely no contact then the diving player is suspended for 5 games.
However, a player can avoid suspension if, in a situation where he went to ground without contact and a foul was called, he gets up and immediately tells the ref he wasn't touched, in which case he receives only a yellow card.
In other words, in a foul is given but the player wasn't touched this is a dive and the diving player should be punished. The punishment is either a yellow card if the player admits he dived immediately, or a 5 match suspension if he doesn't admit it and is found guilty by video evidence.