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Some immediate reaction thoughts:
Taxpayers subsidize Penn State, directly through funding and indirectly through student tuition programs. Fining the institution is fining taxpayers. The NCAA fines and the sure-to-come (and justified) civil penalties should be paid by the individuals responsible - administrators, board members, prosecutors, investigators, janitors, et al.
The NCAA penalties will hurt people well beyond the football program and the university. Local businesses are going to take a beating, when maybe 20,000 fewer people come to town 8 times a year.
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 "I'm certainly free, nay compelled, to spread the gospel of Spex. " - xoxoxoBruce
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