Gaming the referee is a legitimate part of the sport. I hate it, but it's there and it's not going away. Many will find it hurts them in the long run as you get a reputation and become less likely to win fouls - its dangerous for you and can be a detriment to your team. It's just part of how football is set up.
The referee's judgment is just one element of the game. Protesting to the referee to try and convince him something is a penalty or a foul or a dive can be rewarding. Or it can get you carded. Shittalking is the same (unless it's racist, which is against the rules).
And diving is permitted. If you dive, the referee just lets the game continue (unless no advantage is given to the opposing team, in which case a free kick is given). If you do it too much, you're cautioned. If you keep doing it even on a yellow card, god save you, you're going home.
Cheating is not permitted. Cheating gets you banned from the game for long spells, and in some cases gets you involved with the police and perhaps even in jail. Again, they're just different.
Fair play, Arnie. The word "cheat" has many definitions and uses. I agree with you in a sense, since players will try to gain an unfair advantage in any way possible. That would seem to qualify as "cheating," but for me, there's a distinction.