I think they should have had their football taken away for the same time frame that Paterno knew, but did nothing; ie. since 1998 (total of 14 years). They should have lost scholarships also numbering 14 per year for the same time duration. In other words, they should pay back the same amount of time that Sandusky was allowed, because of their inability to follow the law, to prey on children. Further, the fines levied supposedly will go to child abuse groups and limited to a period of four years; should instead be made PERMANENT, to reflect the reality of the permanent nature of damage to those victims.
IMHO, they got off easy. The Freeh report was dead on. It was all Paterno's fault that Sandusky was allowed to continue to do his evil; JoPa's football simply mattered more than the lives of Sandusky's victims and Paterno didn't bat an eye in ensuring that his program remained untouched by bad news, even as he knew that little boys were getting raped.