I'm not saying throw the book at the kid, but the woman he hit was knocked unconscious and suffered a serious concussion, which can have lasting effects on her life.
You've proposed a pinprick of a penalty for a rich kid. I'm not sure what the appropriate punishment is and likely that is close to where his parents' lawyers will get things settled, but community service is often a joke and rarely fully served and daddy paying a small fine would be less than a slap on the wrist.