OK - so Harbaugh can coach the team all week, help develop the game plan, work with the players, etc.
He just can't stand on the sideline during the game. Is that really a big penalty?
the only real impact is that someone else has to make a few key decisions during the game - go for it on 4th down instead of punting, when to use time-outs, etc.
the assistant coaches have worked with Harbaugh. they probably have a very good idea of how he would handle those situations.
Yes, having the Head Coach not there in person on Game Day could have a psychological affect on the team - or it could make the players even more motivated to "Win for Jim."
So in my book, this 'suspension' is more symbolic.
(because I suspect the B1G is well aware that the NCAA is doing its own investigation and in the end, the NCAA may be swinging a much bigger stick in terms of punishment.)