You are right in that summary blame of all Penn is wrong. But at a certain point, institution culture takes hold of the entire acreage on the campus.
I've spent a LOT of time in every Division I campus as they were all my customers. I sold to the Deans on-up to the Chancellery for each university. I was educated at Syracuse (Division I). Like many here, I know the wide reach the sport elements of culture and the way it infuses the most unexpected areas.
The sport elements are dominant. The sports take priority. The sports are seen AS the university by a multitude of souls both inside and outside these universities. At Syracuse, a Div 1 athlete could do no wrong. They could park their booster-supplied Mercedes on the sidewalk if they chose and no one would say a word. Date-rapes would never see a drop of ink in the papers, yet be widely known within the student body.
We all see the strong and arrogant existence of the sports personalities and we all have no choice but to accept it as a reality of being a student there. Something very wrong at Penn led sandusky to offend so openly in the sports enclave with little-to-no concern of ramifications.
I've used the analogy before, and I'll use it again. "Not every German was a nazi. Not every nazi killed Jews...but the entire German population was put-down with a LOT of collateral damage." The nazis brought the trouble to Europe and caused a LOT of damage beyond their own scope. But they had to be put-down with a degree of brutality that did even more damage to the innocent of Europe.
The Div I sports cultures are out of control with their entitlement and arrogance. Penn's sports leaders learned about this 15 years ago and did nothing. That is all the evidence I require to demand that the sports program be introduced to the shredder. They have no business representing anyone or being trusted by anyone from here-on.
The good students and good people at Penn will survive this. They will begin to self-identify with elements other than the sports prowes. Right now, all the good people of Penn probably can't find a soap strong enough to fix their grief and disgust in their association with the football team.
EDIT: I expect someone to begin a class-action against the school for refunds of tuition paid. Every potential employer will read "Penn State" on the resume, but see "that horrible thing."