This is all correct. But the one thing I'll just stress here is it only feels like the yellow card is wrong because most of the time refs are too reluctant to give out yellow cards for simulation, which is why players dive all the time. Nobody likes the diving. But the only way to stop it is to actually punish it which nobody seems to want to do either.
Refs just have to enforce the rule more often. I get not calling simulation when there's some contact and the guy goes down too easy, but if someone is falling down with no contact refs need to bring out the card every time. Giving the ref discretion on the VAR so he can pocket the yellow and not punish the simulation is not a move in the right direction.
