I feel badly for the students and players that had nothing to do with this, but unfortunately they are collateral damage in all of this. It would be impossible to appropriately punish the school and it's football program without affecting students and athletes.
As far as Paterno goes, I don't understand the mindset of people that defend the guy. He put his own legacy and football program ahead of the safety of these boys. He knew about this in 1998, and did nothing. He had it dropped on his lap again in 2002 and failed to take charge of it. He aided and abetted a crime. Period, end of story.
In some ways I think what Paterno did was equally as disturbing as what Sandusky did. Sandusky is a disgusting fuck, don't get me wrong .... but he's sick in the head. People that are sick in the head do this kind of stuff. Paterno allowed it to go on for his own selfish reasons. What kind of egomaniac do you have to be to do that??