The problem with Schiano wasnt the PSU stuff but it was the fact that he was cheap and the preferred choice. The administration did a horrible job of managing expectations/PR with that hire and any coach not named Gruden or Mullen would have seen as a letdown. Schiano would have been doomed from the start here unless he won big in 18 or 19. Based on the facts at that time, eventually hiring Pruitt was a better choice than keeping Schiano.
If Schiano was the 5th or 6th choice like Pruitt, the fanbase would have been more accepting of the hire. I know it's a hypothetical but Schiano as the 5th or 6th choice would have been more successful than Pruitt as the 5th or 6th choice. In the SEC, winning begets winning and Schiano as an experienced coach would have won earlier.