Here's the glaringly obvious problem with that: the people involved in the cover up have been fired or have resigned. Cancelling the program at this point doesn't punish them.
Here's the glaringly obvious problem with your opinion... what has been already done (the removal of people involved in the cover up) doesn't even begin to address the crimes committed against even a single victim of Sandusky. Unfortunately there is more than one.
Penn state losing their football program would send a message about the severity of covering up child rape (that's what happened to at least one victim).
Other Football programs have been suspended for a year or more for much less serious violations involving payouts to players. Those are ethics violations. What Penn state is involved in goes miles beyond ethics violations.
There are long lasting ramifications that the victims of child abuse have to deal with especially if the abuse involves sexual molestation.
These are felonies not mere ethics violations which in the past has been adequate reason for suspending a sports program.
Are you seriously telling me that the cover up of child molestation doesn't warrant such action while other programs have suffered such consequences over paying college players?
I find that mind boggling.
Additionally it appears that the current governor of Pennsylvania, Tom Corbett, may have just not chosen to commit adequate resources to investigate the what happened at Penn State when he was the Attorney General of Pennsylvania.
As Zinfamous suggested this may indicate the PSU Football culture has an undue influence over things that it just should not have any influence over.