Paterno, assuming that he grasped the gravity of the situation between Sandusky and Sandusky's victims, st least reported what he had heard (not seen) to higher authorities at the university, one of whom was in charge of the captive campus police department. Schools have campus police departments so that they will not suffer embarrassment when community standards on sex, drugs and what not are transgressed by those on campus. Independent governmental police personnel are a LOT less likely to cover up for the reputation of the canmpus in the community.
Paterno is the scapegoat because he is the only one in the chain known to the national public. He is also no longer available to defend himself. Assuming that Paterno was as guilty as most folks seem to imagine, Spanier, the Trustees (probably largely chosen by Spanier or with his approval) and the school's administrators (several of whom are awaiting trial on their own criminal charges brought by the Pennsylvania Attorney General) are AT LEAST as guilty and likely more so. No one has credibly suggested that Paterno was indictable.
If we apply your standards, then the entire university should be punished for what its president, administrators and trustees did or did not do. Since Spanier is now a full sociology professor masquerading as a "scholar" (with tenure), start by shutting down the sociology department (a good idea in any event) and all other academics. Sandusky had been an assistant football coach but the coverup artists were primarily academics.
Whaddaya say: a five year suspension of the entire university? Ten? Death penalty by abolition of the school itself?
I have a better idea. Fire each and every responsible party (including McQueary who certainly delayed reporting what he could have physically stopped). If at all possible (by closing the entire university for a few years), punch the ticket on each and every teacher, allowing them to apply for their old jobs and abolish tenure. Then contact Hillsdale College for Larry Arnn's advice on replacement of Spanier, trustees, faculty and administrators (each and every one). Then announce that Penn State will henceforth be America's LEAST "gay friendly campus" and America's LEAST NAMBLA friendly campus.
Let all athletes transfer since their university has ceased temporarily to exist through no fault of their own, right down to the tiddlywinks team.
Oh, and if Former FBI Director Louis Freeh is such a world-beater of an investigator (paid by the university per order of its corrupt trustees playing collective CYA), how many "law enforcement" killers at Ruby Ridge and Waco were ever indicted due to the efforts of his FBI????? Were any of them even fired????? How about the many instances of Arkancide that occurred on his watch??? Crickets!
Paterno is very definitely the scapegoat, here. The idea seems to be to try to isolate the blame to the football program to avoid smearing the whole university with the scandal.
In my opinion that is the worst thing that the administration could do. Like you said, they should fire every single person that played a role in the cover up, starting with McQueary. He simply can never be trusted again.
This whole thing reminds me of a scandal at the local Catholic Church, when I was in high school. The priest was taking the whole acolyte class down in the basement and getting them drunk on church wine and molesting them. One of the parents found out and called all the other parents. Charges were brought, but then the parents all agreed that it was better to just let the church take the priest away, send him out west to some rehabilitation site and drop the whole thing. Who knows how many other kids those parents endangered because of their refusal to expose themselves and their kids to the press of making accusations against the Catholic Church. This was back in the ‘60s, before any of the war against the Catholic Church had started. My father was the desk sergeant.