As much as I hate the little nancy-boy, I can't help but feeling that the Ronaldo-bashing is going to get over the top. I feel sorry for his family now, and anyone close to him who'll have to suffer the consequences of his cheating.
I've always thought that FIFA missed a trick in the last World Cup when Rivaldo did the dying swan against Turkey. If they had balls they'd have banned him for the rest of the competition; it needs drastic action like that to make players rethink their actions. You couldn't fine someone like Rivaldo enough to hurt him, so you need to hurt him in another way. Taking away his chance to play in the biggest tournament in the world would have done that.
My thoughts on simulation are this: the first time a player does it in a season, he gets banned for say, two games. If he offends again in the same season, he gets a five-match ban. If he does it again, he misses ten games, and so on. Players like Ronaldo will be forced to clean up their act if they don't want to spend most of their career on the sideline, and managers will have a real reason to clamp down on cheating in their ranks: would you want a player to risk diving to win a pen if it meant he'd be unable to play for the next two months?