If the rumors are true, it is MUCH worse.
The "death penalty" as described by NCAA law is a 1 YEAR shutdown. That's it. ONE YEAR. It's not a permanent thing. No loss of scholarships. No bowl bans. Just a one year shutdown.
If the rumors are true, this is basically relegating their football team to irrelevance for years--maybe a decade or more.
Uh, no. A shutdown for 1 year or more means the loss of every single impact scholarship player (likely) and the loss of most, if not all, of the coaching staff. That's essentially having NO schlarships for a year or two, instead of a loss of 60 over how many years.
Football programs lose scholarships and postseason appearances all the time for NCAA infractions. And as someone already mentioned, just look at USC.
The Death Penalty is FAR worse. I don't know how anyone could argue otherwise.