At best, I'd call it savvy. At worst, I'd say it made poor sell-jobs in professional wrestling look good. It is at the same time one of the best and worst flops I've ever seen; I believe the technical term is "bitch move".
As far as punishing flopping, I agree that you can't really T players up. It's a nice idea in theory but with the two techs and you're out rule along with the subjective nature of flopping - was it an exaggeration to sell legitimate contact, was the contact really that hard, where's the line between cheap tactic and gamesmanship, etc - it's a stiff penalty that likely won't be enforced competently or consistently.
The best punishment for floppers, offensively and defensively, is a non-call. Let the guy who tried to sell a non-existent charge lay on the floor while his man breezes to the hoop. Let players toss up wild shots where they leap into a defender going straight up in an obvious attempt to draw a shooting foul.
Going back to the idea of reviewing the tape on players known for or accused of flopping, you'd be creating awareness of their tricks and tactics giving the referees something to look out for. While there is the question of possibly creating bias against those players, I think it's more about crying wolf too many times causing them to lose the benefit of the doubt. I'd suggest they'd still get the calls when they're legit, but far less calls that they try to manufacture so blatantly.