I know others probably disagree, but I put Penn State firmly in the tier 2 category. It's not in the blue blood, tier 1 category with Ohio State, Michigan, Bama, Texas, Georgia, Notre Dame, etc. but I think it's there with Clemson, Oklahoma, FSU, Auburn, Tennessee, Miami, aTm, etc.
IMO, Curt Cignetti is going to have to think long and hard about it as it's a far superior job to Indiana, other than the expectations. Cignetti could win 10 games/year at IU and they'd build a statue. If he doesn't want to (potentially) unrealistic expectations that PSU would create, then it probably doesn't make sense.