It's probably the only solution. Get tough on every bit of gamesmanship, simulation, the lot. Book them for picking up the ball after a foul, book the lot for surrounding the ref, book them for leaving/entering the field without permission after an assault on the opposition bench.
Start throwing cards around and sending them off. Give the penalty for shirt pulling, no warnings other than day 1 of the season. Once sides start conceding 3 and 4 pens a game and finish with 8 players they will soon wise up. It would make the game a farce in the short term, but better for it in the long. If something doesn't change it will just get worse.
Finally, get the fucking idiots on tv to smarten up. I'm sick of hearing them say "he thought he felt a touch so had every right to go down". Grow a pair and tell it as it is, they are con men and should be called out. Kids see and hear all of this and think it's ok!! Mind you, if they are ever fortunate enough to be footballers they will be told as much anyway