1) They addressed this within the hour of this post
2) They most certainly punish refs. You should have remembered Joe Tiller raising hell after countless controversial calls helped PSU beat Purdue in 07. I'm not sure why that would be forgotten, other than it didn't come at PSU's expense?
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Not only was this ref mixed up in some awful stuff and beyond compromised, but his crew greatly changed the outcome of two separate games. And unlike the prevalent mindset of the B1G holding back PSU and protecting OSU/PSU, both times the opposite came true.
The B1G reviewed the awful officiating (and potential corruption) by Pamon at Purdue's expense (and PSU's gain) and suspended his crew. But like the league always does, they find a way to lower the bar with officiating. Should you suspend them from all games? Crazy talk. Let's suspend them for Nov 17th, but let them officiate the Nov 10th game with OSU & Ill. Yeah, that will end well.
And again, for the conspiracy theorists out there, the B1G was reeling and desperately needed to repair its image. OSU & UM got humiliated that previous postseason, getting smoked by UF and USC. If it's true that the league conspires against PSU and protects OSU/UM, like many here seem to believe, why in the world would you let them impact a late season game of the #1 ranked buckeyes?
And guess what happened? They blew a bunch of game changing calls. The Illinois tailback ran for a big TD but clearly fumbled before he crossed the goal line. Replay was available (and it was a long TD with plenty of time to review it). They claimed they had equipment malfunction and could not buzz down (like the absurd excuse on the Vonn Bell INT vs you). On another TD, they had a full speed pick play where the blocking WR hit-sticked the defender covering the would be TD scorer. There were other blown calls as well, but those two were the most egregious and accounted for two TDs in a 21-28 upset.
Was this some massive conspiracy to keep OSU down too? Or does their incompetence know no bounds? It's the latter.
The reality is B1G officiating is awful. Part time refs are part of the reason, but mostly it's because everyone notices the failures. No one sees holding by their own team unless they literally tackle the other team's DL, but we all scream bloody murder when our team's DL is mugged. The only consistency in B1G reffing is its awfulness.
The difference is the rest of us don't assume that they're out to get us with their stupidity. It operates on a much higher plane and does not show discretion. It can strike at any time and hurt anyone in the process.