If I were Emmert (and Delany), this is what I'd do:
1 - PSU plays only road games for 2012 and 2013 (2 years balances B1G opponents so they almost all get 1 extra home game). PSU gets the normal amount of tickets and revenue for visiting teams.
2 - Bowl and B1G CCG ban for 7 years, and the B1G teams split their bowl revenue for those seasons 11 ways, with PSU getting zero.
3 - schollies by year:
...2013: 10/63
...2014 thru 2019: 15/63 (63 is the FCS/1AA limit)
4 - all current players can transfer without penalty, though they will count against the 85 scholarship limit somewhere else
5 - the PSU athletic and compliance departments, and their administration must be subject to all FOIA requests in the future. Note - If I were Emmert, I would make this a condition for all teams that want to be eligible for the new playoff format that starts in 2014. (USC, ND, Miami, etc. should all be subject to FOIA requests for anything related to athletics or program compliance within their Universities)
No TV ban or death penalty. The TV ban penalizes the fans of their opponents, and it's also hard to enforce with satellite broadcasts and unauthorized internet feeds.