Assuming Petersen wants to leave Boise, I think he's the best candidate for Penn State, despite the lack of ties to PSU or Pennsylvania. First and foremost, he's an exceptional coach, arguably the best in the country given the way in which he's built the Boise State program into a national power. Moreover, his personal connection with the purpose of THON is really a great PR story that would help focus attention on Penn State's good works.
In other news, Darren Perry -- former Penn State and NFL defensive back (2nd all-time on PSU career interception list) and current Packers Secondary coach -- evidently asked his agent to tell the media that he would consider the Penn State job.
Other names for the job that I hadn't heard of been have seen around the interwebs: Gus Malzahn - Auburn OC; Kirby Smart - Bama DC; Paul Pasqualoni - Current UConn head coach, former Penn State player; Troy Calhoun - Air Force head coach; James Franklin - Vanderbilt head coach, PA native.