I have some sympathy for referees generally, but I also have to agree with you that the standard seems to be slipping. Yesterday's official was the worst for a long time: he even made the usually sight-challenged linesmen look reasonable!
However, I'm not so sure about the idea of pro footballers at the end of their careers, switching to become referees. They do know the 'tricks of the trade', but I'm not sure that means they'd be better at managing 22 players and two recalcitrant managers. Its a tough job, but it's rewarding (I am told by an ex-ref) in more ways than cash.