I think refs should consider whether the "reaction" of the "fouled" player would have been the same if it was outside the box. If not, it's a dive.
This *contact* business is a load of cobblers, it's a contact sport FFS. It needs to be a foul, NOT just "contact".
It's up to the authorities/refs if they want to clamp down on it or not. Players only do it because they get away with it and little fear of any repercussions so it's hardly surprising that they do.
