1. They traded an all-star player for a draft pick who wasn't even going to play in the coming season.
They traded Holiday for Noel (who was considered to be in the running for the first overall pick) and another first-round draft pick.
2. While in season, they essentially gave away two of their top three veteran players for nothing.
Those guys were neither very valuable nor very good (notice how Turner garnered very little interest this offseason), the team was 15-40 at the trade deadline, and they were already nine games into their losing streak.
3. After that, they drafted another player who likely won't play at all in this coming season.
This is true -- but Embiid was considered the consensus first overall pick before his injury.
4. They then traded away their last good veteran player for scraps.
They got another first rounder for Young.
Regardless, it's all subjective. There's no realistic way to penalize Philly in a way that doesn't leave legitimately flawed, bad teams vulnerable to unfair punishment. Should bad teams not trade away veterans who aren't part of their future? Should bad teams not draft the best player available? Should bad teams not make moves to acquire draft picks at the expense of immediate production from veteran players?
Because Boston did all of that this past season. They traded away KG and Pierce for draft picks, they drafted Smart presumably because they considered him the best player available at that spot, and they traded away guys like Crawford and Lee and attempted to trade Bass during the season because those guys had (and have) no future with the team.