Referees are not told to ignore fouls, but to call the ones that truly affect the game or are needed to be called for game management. If referees called every foul then the game would stop every 1-3 minutes. There are minor trifling fouls occurring about every couple of minutes. It would be ludicrous to call every foul and just piss off the players. I have seen more problems in games where referees call overly tight games compared to a loose game.
Agree with the sentiment wholeheartedly, but I always go back that the "trifling" concept is why soccer as a game is fundamentally broken right now. To start with their no transparency on this. The concept of trifling is not in the LoG but instead of the advice to referees (and IIRC it was missing from last year's manual entirely). So for a parent looking to get up to speed on what the rules of soccer are or why things are called the way they are, there's no guidance in the rules.
Then there's the wide disparity about what things are called "trifling" from referee to referee. For physical fouls there isn't really any guidance for when a careless foul interacts with the trifling one beyond "impacting' the game (which also curiously sets the test for protecting the game, not necessarily the player). For everything else, what's trifling: a throw in violation, a goalkeeper stepping a few inches outside the box on a punt, a goalkeeper stepping a few millimeters off the line (we saw that in the WWC), handballs? It leaves it to different refs to have different standards, which in the minds of observers sets things up as being capricious. Add to that maybe a ref calls the game tighter or looser depending on the tone, and you add to the problem (now the observers are wondering why you called it against Billy but not Johnny).
There are other reasons for the referee abuse. I'm not suggesting that this feature in the game is responsible for it entirely (though I do note that the problem is not just with us, but across the world since other countries are having issues too). But the fact that there isn't more guidance, and therefore game X may be fundamentally different from game Y, is in part one of the underlying causes (though not justification) of the spiraling side line behavior.