The fact was they weren't going to punish anyone else, so it was fair to retract it, they also I believe took back the ban because A, there was some contact however small and they can't prove Eduardo didn't go down to prevent injury assuming the first touch wasn't going to be minor.
Again its a hard one to prove intent for because afaik the penalty was given without him actually appealing so they couldn't prove he deceived the ref as opposed to the ref simply making the wrong call, again, fair. Even more so considering far more blantant dives that have happened since. LIke for instance, Rooney for England and others aswell.
Frankly their option was to spend months of the year banning 40% of the footballers in the world and dealing with all the appeals, or recinding this one completely unfair and inconsistant ban.
Using the lithuanian guy as an example doesn't help your case, it weakens it, just like that one this was out of the blue and completely inconsistant.
I'd happily see every dive AND every shirt pull by a defender and attacker all punished restrospectively till no one bothers doing it anymore, but punishing one player out of 1000 randomly is beyond ridiculous.
Likewise, even though I thoroughly despise Caragher and how many penalties he's got away with not conceding, I'd also completely oppose a ban to him for doing it while no one else got a ban for doing the same thing, it would be just as utterly ridiculous.
The main thing I have a huge problem with is people seeing diving and conning the ref as any worse at all than a defender who pulls someone back by tugging their shirt on the blind side of the ref and not having a penalty given. Both actions are contrary to the rules and both ARE cheating. Both are an established and unwelcome side to the game but EVERYONE does BOTH, some teams are worse than others for sure, and Eduardo is most certainly not even close to the worst offender in the league.
If you had to randomly punish ONE person for diving or shirt pulling, it should be the worst offender, I still wouldn't welcome it.