If for you it's more of the decision making that makes you feel the way you do, I would point out that the administration doesn't operate at the pleasure of the alumni nor for their sole benefit and never has. Alums are just one of a myriad of stakeholders that management is hired to serve and decisions are made with not just one constituency in mind. Further, management operates with much more information than alums are privy or entitled to and decisions many times are influenced by legal considerations surrounding existing and future litigation.
It's just a terrific idea for an institution of higher learning to completely alienate its hundreds of thousands of alumni. Splendid.
As Susan said, it's negatively affecting donations to the university. Only a person who doesn't care about the harm done to Penn State (and you have consistently shown you are in that camp) would think that it's OK for the university to deliberately piss off the alumni.