I was being slightly facetious - I agree with you about cheaters being punished!
I just think that the glut of diving on the scale to which it's now prevalent is caused primarily by a lowering of the criteria for which a foul is now given. For me football is a physical, contact sport, and the large number of penalties that are now given because a defender brushes an attacker's leg are a direct cause of the culture of diving in the game nowadays.
Of course, I know that it's always happened, but not on this scale, and not with this much acceptance from the wider public. A few years ago people were disgusted by the actions of Klinsmann etc in winning free-kicks and penalties, but nowadays there's encouragement from all quarters for attackers to go down at the slightest touch.
That's what I think is against the spirit of the game.