There is no question he dived and he should be banned.
However, the fact this rule is not universally applied is what infuriates me. How many suspensions would there be every week if they video reviewed all controversial fouls? Easily dozens, considering how soft Italian refs are and the corresponding behaviour of players in serie a who exploit this at every opportunity.
Diving is a big problem in serie a, but the Italian media only make a spectacle of it if a penalty is won and/or a Juventus player is involved. It is ok to dive all across the pitch or fake injuries to get the opposition to kill their possession and/or receive cards, but the second this behaviour infiltrates the pk box, it's a scandal. If the opposite were true, Paponi would be serving a lifetime ban after yesterdays match, considering all his diving and injury faking every time Motta came within an inch of him. Maybe if his name didn't end in a vowel things would have been different for him...
It's a blatant double standard anyway you look at it, and the Italian FA is once again demonstrating how backwards they are (as they have done with the foreigner issue, calciopoli, fan violence, and up until this season, media rights).