They are making way less money than if they schedules a quality opponent. But yes, they are still making money in a stadium that is substantially short of a sellout.
1) Until someone stops paying for it, not likely to change.
2) PSU is not "normal" (to its peers) wrt OOC scheduling.
Among those who pay for this stuff, two primary entities - fans and TV networks.
Fans, so far, have been very willing to pay big $ for season tickets - even if that slate includes several dog games. Even if it includes several dog games, like last week, where 25,000 folks pay for tickets but don't even bother to show up. That costs PSU some money - concessions and what not - but not enough for them to worry about.
The more likely catalyst to change some of this is the TV folks. They have been pushing for more good-vs-good conference games. And I can't imagine those pressures won't grow a bit - and include OOC schedules.
PSU's OOC scheduling is DEFINITELY not the norm.
Just over the last 10 years PSU's Big Ten peers (OSU and Michigan) have scheduled OOC games with Texas - twice, Notre Dame - 4 times, Florida, Oklahoma - 3 times, Oregon (before they moved to Big Ten).
PSU over that same time frame? Well, they did schedule the 2 game set with Auburn (not a blue blood, but shoulda' coulda' been a solid match up. Not PSU's fault they stunk it up for those two years) But that's it. That's embarrassing for a supposed blue blood program - and not anywhere near comparable to OSU or Michigan.
And it only gets worse moving forward - where OSU has series set with Texas, Alabama, and Georgia : Michigan has series scheduled with Texas, Notre Dame, and Oklahoma.
Penn State? Nothing but absolute trash games. Love it or hate it, that's the way HCJF wants it. It is what it is. But it is NOT "normal"
If the TV revenue pot were to be allocated out to teams based on their TV ratings, or some such thing, that would stop. Could that happen?