It's a problem because it can affect other institutions down the line. There are proper governing bodies to handle this situation and the NCAA is not the right one at this time. That would be the DoE and the DoJ. Rip away their federal funding for violating the Clery Act and put the criminals in jail.
People lauding this NCAA punishment are praising empty sanctions. The problem was not confined to an athletic department, it was institution wide. What does punishing a football program do? The NCAA saw it as an opportunity at a power grab due to PSU agreeing to it, so they took the opportunity.
No one is saying that PSU shouldn't be punished, but they should be punished correctly, not some stupid symbolic punishment that effectively changes the landscape of college athletics as we know it.