Here's a link to the punishment.
I find it more of a punishment towards Paterno than the Univeristy and Football Program. All wins stripped from 1998 is aimed at Paterno. I thought the scholarship reduction was too light. IMO they should have stripped them of any scholarships for one year and then a gradual increase over five years depending on how they comply within the handling of the football program. Reduction of scholarships will hurt them but won't be catostrophic.
The monetary is a lot but not anything Penn State can't overcome by just putting on huge fundraising drive.
The ban from bowl games will have an effect on recruiting. I doubt they will get top level players knowing that in the end they have no chance to play in a bowl or playoff game.
Overall I think they are lighter than they should be. But if Penn State was truly wanting to put things into prospective they would shut things down for a year or two right now. If anything just to think about what's more important, football or having good solid educational instititution that puts things in the proper order.