In my book it is right on the edge of pen/no pen. You can see he throws his arm out, but it is a natural part of his movement (jumping in order to block with his body). If it becomes the standard that such situations are considered deliberate handball, defenders will have to make all movements with their arms held firmly against their sides (an unnatural position).
It is not an obvious error to give a penalty, but a subjective decision - of a kind that has caused heated discussions for decades. I have participated in many such discussions myself as a player, against people who think that any contact ball-hand is a free kick. Even if the ball hits your hand when you don't even see the ball, as long as you have an advantage of it.
No, based on my understanding of the handball rule (and its intention) I think that sort of situation should not be penalized. But based on precedence in today's top level football, it should.