I don't understand punishing the fans and the players. Fine the school but don't ruin the program. Just what is the NCAA going to do with the money? Give them selves raises and create more positions to hire their buddies.
They are setting a precedent that this sort of thing will not be tolerated and must not happen again (or else we will cripple your football program). Personally I think it needs to be done even though it penalizes some people who were not at fault.
For the athletes who are good enough to make a pro career out of it, they will still do that regardless of any penalties the school faces; if you have pro talent you have pro talent. For those that don't or for the fans who won't get to enjoy an elite football program anymore, that's too bad but there are more important things in life than sports. In the end it's for the greater good that they're made an example out of to stop this from ever happening again.
The money is going towards children's charities supposedly, the NCAA doesn't just keep it. It's a corrupt organization but they aren't THAT corrupt.