What the point is that is he did his job. The fact that the university imposed sanctions implies that Paterno did his job by reporting it. It is not his place to do more because he doesn't agree with the verdict, in the same way that I'm not morally obligated to go kill Casey Anthony or something because I don't feel enough was done. It is not his responsibility to do anything about a coach just because some assistant, who may or not be credible and may have any number of reasons for complaining told me so. Besides this, I have no authority to do so if the person isn't even under my control.
@UTAlan: What you seem to be ignoring is that he reported it to his boss and told him it happened on premises at their workplace.
Nobody denies that a serious injustice was done, but what the hell does this have to do with Paterno? The answer is simple: it's political, just like everything else. If a cop shot someone and there was a public outrage over it, is doesn't really matter whether or not the shooting was justified - the cop is fired the next day, just to avoid a public scandal. Exactly what's happening here.
I feel that Paterno was unfairly dismissed, and would have every right to sue for both his job and defamation. It's simply not right to essentially end a man's life over something that has been ridiculously blown up by the media. Paterno was just the person to take the fall for other people's mistakes, nothing else.