Kaitlyn, the issue is that only SIZE (not the mere presence of) a diffuser is the key aspect that determines its effectiveness, when it is used as a direct source of light.
When a flash is pointed up to the ceiling, the ceiling becomes a 'large virtual source of light' and that provides the soft lighting with fewer shadows. Putting the 'diffuser' on the flash head does nothing to make the light from the ceiling 'softer' because it is no larger than the flash head itself. An Omnibounce pointed upward does send some light straight forward to the subject (a benefit, as a 'second source' sending direct light forward in addition to the ceiling bounce), filling in the eye sockets and under the chin -- with light that is virtually AS HARSH AS pointing the flash straight ahead -- as well as sending light up to the ceiling. But it also sends light backward and to the sides, wasting light except in small rooms.