Punishments RARELY effect just those directly involved... and those instances where individuals conspire to cover up anything, make it even worse. Collateral damage is a fact of life...
Institutions/businesses are regularly punished for the actions of their leaders. It greatly effects innocent employees (and in this case), students as well. Always has been that way, always will be. The fact that many are too emotionally involved to see that doesn't change it. I happen to think a few of the sanctions went too far, but if Penn St. fans/students expected a slap on the wrist, they were in total denial...
Think of the innocent that have suffered for the actions of their leaders. Enron, innocent Catholic Priests, The Japanese people, the German people, SMU, Solyndra, Car Company layoffs, Steel Worker layoffs etc...