Don't know how everyone feels about PSU, but the actions (or inactions) of the culture that created the worst scandal ever in college athletics needed to be dealt with. I know many thought the NCAA overstepped their bounds, and many more thought they did not go far enough. My own opinion is that PSU got off easy. This suit only continues this obscene scandal, and once again affirms that maybe stricter sanctions were necessary.
Paterno is dead, Sandusky in prison, McQueary unemployed, one witness is witless with Alzheimers, the administrative officials who facilitated the abuse are in prison (or going to be) for the rest of their lives, and the university is going to deal with litigation for awhile. Those who are directly responsible are either out of our reach or suffering the consequences for their actions.
Why the NCAA feels the need to punish where God and the State have first dibs, I don't know. This is essentially a criminal matter, not an athletic one. That it happened in the locker room and not the classroom is an accident of circumstances, not really a justification for NCAA sanctions. There's no competitive balance issue to be addressed here (like there was at SMU).
I do think they're within their bounds to levy fines provided that the bylaws stipulate such for member schools besmirching the organization; obviously PSU signed on the dotted line, like everyone else. And truly some good can come from the $60M. Presumably we'll see some efforts at raising awareness and preventing child abuse. So I don't really have a problem with the fine, although I have no idea where they got the number from (was it based on revenue Sandusky may have accounted for?) Stripping the victories also doesn't really bother me, although I find their timing a little arbitrary.
I do think they're overstepping—or at least overcompensating—to hand over a bowl ban and the scholarship reductions. This punishes those who aren't actually responsible, while the major players are all dead, unemployed, or in prison (or about to be).
The best argument I've heard for the sanctions is that PSU has a culture that needs to change. I guess we could say that hero worship fosters an environment in which child abuse can go unreported or be swept under the rug. I agree with this, but I don't see how the NCAA sanctions will fix that problem; in fact, they may only make it worse. Whether fans feel any personal moral culpability (would that they followed Chesterton in this regard!) remains to be seen, but I doubt that punitive sanctions will fix what the revelations of decades of abuse and misplaced trust couldn't.