WTF is a close free kick? Do you mean a penalty kick?
As for the rules, the fist problem is the visibility of the play. In football, if a ref misses a hold, there is a good chance you may not see it because you are looking at the runner and not the blocker. In soccer, most fouls or dives occur against the guy who has the ball, so you can always see and debate whether it was the right call or not.
The second problem is that there is too much subjectivity regarding what constitutes a foul and what doesn't and what should be carded and what shouldn't. This is especially true when a guys get punished for actually staying on his feet. If a guy fouls you but you don't go down but the foul ends up knocking you off balance and disrupting the play then you get screwed as the ref won't call it. If however, you go down even if you technically could have stayed on your feet then you get the call. The end result is players feel the need to try and sell a foul to get a call because there is greater risk in staying on your feet after contact unless you are sure you can make a play.
The final problem is the field is just too damn big to manage the game especially with no replay. It just makes it way too easy for a ref to not see a play and make the wrong call.