The reaction that most Bearcats will have to this is, probably, over the top. Speedy Howard has a Penn State offer now, but it remains to be seen if that offer is committable. It could be at some point, but that probably isn't at the discretion of Howard.
Penn State has a lot of offers outstanding for the class of 2013 at corner back, 20 if the 247 sports database is accurate. But corner isn't really a huge position of need for the Nittany Lions. They will carry 7 possibly, 8 corners this season, none of which is a senior, meaning that the whole lot of them will return for 2015. That level of depth means that corner is not a huge position of need in this class.
James Franklin has 16 commits already in a class that will be limited by sanctions. Penn State is limited to 80 scholarship's by sanctions and rough math puts their class cap at 17 for the class of 2015. So, they have roughly one spot open. Corner is not a huge position of need, and if they want a corner they are in the thick of things with two in state consensus four star recruits, Jordan Whitehead from Monaca (considered a slight Ohio State lean) and John Reid from Philadelphia (considered a Penn State lock).
Given all those factors the odds of Tubs keeping Howard in the fold in the light of this offer seems relatively high. But it seems unlikely that Penn State will be the only big name to throw their hat into the ring with Howard between now and signing day. The Bearcats are going to have to fight to keep Howard in the fold.