Penn State would never be kicked out of the B1G. Their football stadium draws 100k fans each game and they have a massive living alumni base of over 600k people. For reference, that is more alumni than michigan.
Remember...its all about the $$$$$$$$
It's definitely all about the money, but if you drop PSU and add say Pittsburgh your only loss of audience is the net difference which in terms of tv markets I'm guessing isn't quite as substantial. The B1G is financially health now, a good time to cut ties with PSU. Long term I'm guessing this would be the correct decision. As a result of this issue, You should expect a long term downswing at PSU in terms of enrollment, recruiting, donations that will negatively impact the PSU future alumni base.
The deal breaker is that it allows you to retain the moral high ground as a conference, which is also good for business.