I think you can easily make the argument that this was a penalty. I think it would probably be better though if you couldn't easily make that argument.
There should be something that says that it's only a foul if there is sufficient contact, and a foul shouldn't be given just because of some...
He definitely did dive, in the sense you don't fall over like that when touched, which he was, albeit minimally.
At the very least he was looking very hard for a penalty and managed to just find one and tried his absolute hardest to draw attention to it!