Secondly, it seems as if you are looking for a punishment handed down to Penn State to somehow correct larger systemic issues that you find to be corrupt, immoral, and/or unjust. No singular punishment is going to accomplish that. Could it have been even more severe? Sure. Would some have been critical that whatever that more severe punishment was, it wasn't severe enough? Most likely.
I read a statement from Emmert saying that "For the next several years now, Penn State can focus on the work of rebuilding its athletic culture, not worrying about whether or not it's going to a bowl game." It's my hope that by allowing the program to continue but with significant penalties, the emphasis on sports above all will change over time. There will always be those who will idolize Paterno, sadly, but I think that many eyes have been opened as to the truth of how his program was run and the influence he had over the university. Power corrupts, and so on... Hopefully the severity of the punishment will cause other institutions to realize that if they're faced with a similar situation, sweeping it under the rug will only make things worse in the long run (in addition to being morally reprehensible, but that didn't seem to bother Paterno et al.)
Is it unfair that the current players will likely suffer for something that they had no part in? Yes, but no more unfair than what happened to the players at USC because Reggie Bush took money when he shouldn't have, or what happened to the players at Ohio State because some of them accepted cash and free tattoos.
You know the thing I've never understood about Paterno's legacy, even before the scandal hit? People go on about all he did for Penn State, and yes, he did significantly increase their endowment, but during his time tuition there rose continually to the point that PSU is the most expensive state school in the country. I find it hard to believe that all that money went toward improving academics.