Desmond Howard had a great response to all the "the NCAA decision hurts people who had nothing to do with the scandal"
Current players can leave and play immediately, future recruits can choose to go elsewhere, even Coach OBrien can probably leave.
The real people who were hurt were all the kids who were victimized by Sandusky because Paterno and Spanier (Chancelor "vulnerable") and others did nothing.
What a lot of people seem to forget is every NCAA sanction hurts the innocent. This situation is clearly outside the realm of what the NCAA has handed down sanctions for in the past, but the general idea is the same. A few people screwed up, and now an entire program has to pay. Is it fair to all parties concerned? No. But like I said, in most of these situations, fairness isn't the priority. It's about sending a message and making an example.
Furthermore, as you pointed out, the real people who were hurt were those that suffered from Sandusky's pedophilia. The sanctions do nothing to rectify the physical and emotional damage that's be done to those kids. People keep saying "how does this help the kids who were hurt?" It doesn't, and it wasn't supposed to. This was about making a statement to other football programs.