The simple solution to the Pete Rose situation is to admit him to the baseball Hall of Fame upon his death.
Tell him, Yes, Pete, you're going into the Hall. But only when you pass from this mortal coil.
End of story.
He should be in, but he fucked up, too.
Betting on the sport is the ONLY thing you cannot do.
The only thing. It undermines the entire integrity of the game, like the Royals and Devil Rays do.
When you die, you're in - no apology or admission of guilt necessary.