No, the player does not need to go down for a foul to be committed.
People also forget, or are not aware, that contact is not required to commit a foul:
A direct free kick is awarded (penalty if in the area) if in the opinion of the Referee it is reckless, careless or uses excessive force for the following:
@ kicks or attempts to kick an opponent
@ trips or attempts to trip an opponent
@ jumps at an opponent
@ strikes or attempts to strike and opponent
@ charges at an opponent
@ pushes an opponent
@ tackles an opponent
also if he/she:
@ holds an opponent
@ spits at an opponent
@ handles the ball deliberately (except the GK in his penalty area)
I am amazed that Gary Neville didn't receive a second yellow card
But simply "touching or making contact" is not a foul . and it's not in the big long list of the above ,that are a foul !
PS ,Gary Neville did a little bit more than "Touch" Etherington