Temple makes sense because it takes Penn St close to a huge chunk of it's fanbase in Philadelphia. The 2 for 1 certainly doesn't hurt and you're right they are a cupcake. The Big Ten is challenging enough that you don't need to pad your OOC schedule. It makes more sense to schedule a cupcake than a "rival," because Big Ten schools play enough good teams during their regular season. I never claimed Temple as a rival of Penn St and they're irrelevance and location makes them more attractive than Pitt year in and year out.
Since there are no high school players out of state college, PSU makes no sense for Pitt.
I think many are missing the real point here. The Big 10 is looking to expand to 16 teams. They recruited Pitt in the late 90s, over JoePa's wishes and Pitt turned them down. Pitt is a school (not necessarily a football team) they want. Playing PSU a couple of times, is a good way to get them to jump.
Personally, I would quit following Pitt if they joined the Big 10. I don't care if they play PSU or not. There is a more apathy than anything else for Penn State from Pitt fans. In Pitt student's and grad's eyes, Penn State is a one trick pony. They would be our twice a year whipping boy in basketball, if Pitt chose to join the Big 10.