As I think about this more and more, I think that there's something that everyone should take away from this: temper your judgements and your ideas of what you would have done because anyone who thinks that they know what they would have done is fooling themselves. I chuckle to myself anytime I hear "well, if it had been me..." because I've seen the outcome of those situations and it usually doesn't correspond to the prior "wishcasting". The prospect of actual consequences usually introduces a lot more circumspection and even though it sometimes causes us to not do things that we should have done, it is a self-protection mechanism.
McQueary was a grad student that was looking forward to a career as a football coach. He was put in a terrible position and I don't think that anyone with sound judgement would immediately make a decision at that point as to what they would do. We all like to think that we would immediately rush to the rescue, but historical precedent shows that the vast majority of people, especially when the perpetrator is someone that may have some authority or social standing, don't immediately do anything. McQueary was likely disgusted by what he saw (judging from the words he used to describe the situation), but began weighing his options in a decision that might destroy everything that he had worked for and dreamed of. He probably did what most would have done. He went to someone else in the authority chain whom would be able to take the impetus from him as to what needed to be done. I think that he went to the correct person (Paterno), but that is the person that truly had the authority to do something and he is ultimately the one that failed. If there is a moral failing after that for which McQueary is culpable, it is that he didn't recognize the failure of his superiors in adequately addressing the issue. He could have then went over their heads to law enforcement, although it is likely that they would have balked at pushing the issue and he probably would have kissed any chances at a career in coaching goodbye.
I believe that rage and a lack of honest self-assessment leads to the vitriol and hate against McQueary that is being seen right now. When something like this happens, there's always such moral outrage and this sudden chaotic energy calling for someone to do something. In time, the outrage dies down and then the energy disappears before anyone can take a level-headed approach to direct it to really take actions that will prevent similar things in the future. I think that we're just a society that feeds on moral outrage, but we're bored by the hard work and active planning that it takes to truly fix the problem.
I don't trust rash moral judgement and chest-beating because in my experience, moral smugness and hypocrisy typically go hand-in-hand. For an example, the press has preached about "doing it the right way" holding up Tressel and Paterno as an example for years and we now see the reality behind the curtain. Also, all of Sandusky's crimes occurred under the auspices of an charity that he supposedly set up for "troubled kids". I wonder how many times he stood before crowds and delivered hypocritical harangues about protecting those children from predators when he himself was the predator.