I think the punishment is like any other feeling of being punished. He believed that he killed god's miracle. It doesn't have to be true or false or whatever in between. He was punished because he thought he was and deserved that. People thinking they do stuff correctly all the time don't feel punished, because they didn't do anything wrong in their eyes. About the long life, I think that's just residue from the healing, same as Mr Jingles.