Part of the problem is that refs are influenced by the so called bigger players. So they will always favour them over lesser clubs.
So either the FA/Uefa/Fifa/God whoever is in charge need to setup an independent committee in each division who watch contentious issues the monday following the weekends games, and then if they see any ref giving fouls for diving, or players going down to easily - and if they do, that ref loses his match fee, or however he gets paid.
Because basically they are not doing their job, and if they continue to miss blatant cheating, then quite simply they get sacked or demoted.
A similar committee needs to be setup to deal with the players and if they are found to be cheating then they get a match fine.
Unfortunately though it's part of the culture of football, and players like Malouda and Drogba see nothing wrong with going down and writhing about in pain.
Also I believe if they are on the touchline and are rolling about in pain, well then game continues like Rugby, and if they want treatment they need to roll off and let the physio deal with them off the field - I think it's absolutely pathetic that the physio's are allowed on the field of play when the player can simply roll off and be treated, it keeps the game flowing.
I mean the player will need to go off the field anyway, but still they do it, still they dive, fein injury, try and get players sent off, try and stop the game, etc...
None of these players have ever had a crunching tackle worthy of an injury. Big girls all of them.