It's pretty obvious. It's not a known one possession game. It is either a one or two possession game depending on the result of the two point conversion attempt.
This is a complete lack of situational awareness about the game. Penn State was going to attempt an onside kick either way. If Michigan got the ball back they were running three times to get first downs. Everyone understands this in that game situation. The only difference is that if Penn State goes for 2 after the first touchdown they now know if the onside kick is successful if they need to score once or twice. This is the critical piece of information.
As opposed to losing inspiration when they fail to convert the 2 point conversion with 3 seconds left and have lost the game? If a coach has done his job and explained things to his players this isn't an issue either way. They're prepared to react to the result of the conversion. Either way this entire argument is so absurd. Oh no they'll be sad with two minutes left instead of being sad with no time left. Either way they've lost, who gives a shit? I found out I lost later in the game! Woohoo, that's gotta be worth something in the standings!