On Dutch TV they just showed that NZ's goal was offside, since Reid touched the ball with his head and at that moment Smeltz was in an offside position. So even if it wasn't a penalty, it got cancelled out
Another point is that that cross was way too high for De Rossi to reach. There was no way he could have reached that ball and decided to dive instead of just stay on his feet. Well if this is professionalism...However NZs goal was scored out of an offside position too.
NZ still defending with everyone, although a long distance shot of them went just wide. As soon as an Italian player gets near the box there's 3 players around him, NZ players making it very difficult like that for Italy.