People have a responsibility to stand up and do something if they know that something illegal/wrong is going on. Sure, parents need to be watchful as well, but even good parents can't be everywhere and know everything that is going on with their child. What if the kid is being molested at school, and is too ashamed to tell their parents, but another teacher knows what is going on? You do not think that s/he should have a legal obligation to report the wrong-doing?

I agree that Paterno did nothing wrong, legally. He also hasn't been charged with a crime. He is, however, being crucified by the press and the public and rightfully so. He looked away while a child (and likely multiple children) were abused. He deserves the scorn of the public.