Paterno reported what he was told. That's good. However, when Paterno saw nothing was being done, he should have taken the allegations to the authorities. These are children we're talking about, abused children, including the report from a witness who saw a 10-yr-old boy being raped.
Paterno deserved to be fired. However, so does his boss to whom he reported the abuse, and so does every damned person at that university who was told about the allegations and did nothing. I'm betting there are a ****load of 'em, too. They're using Paterno as a fall guy to save their own asses. I hope the authorities investigate all the way to the top, find out who knew what, when they knew it, and what they did or did not do. Then start writing up arrest warrants... by the dozen if need be.