Not to excuse the coach for his reported actions, but his punishment is technically more than just a 2 game suspension. He is being banned from the tournament, too, along with the rest of the school. And whether his motives were to help a foreign student get a good education or simply to improve the chances of his basketball team winning, presumably he isn’t getting his money back.
Obviously, the IHSAA wanted to send a strong message to the school (and other schools who might consider doing the same thing). I agree that it is unfortunate that innocent parties must suffer, too. But in life there is often collateral damage that occurs when people err.