In my opinion, he should be banned from the next 10 competitive Uruguay matches.
But if FIFA want to go through with this, it will set up a very interesting showdown between the English FA and FIFA right when FIFA is at it's lowest point ever in terms of public perception. If the FA can challenge FIFA on this, they ought to be challenged on Qatar as well.
Of course, does the FA really want to take up the cause of the most despicable player in the world?