Rooney's suspension, a result of his sending off for kicking out at an opponent in last week's final qualifying game in Montenegro, was on Thursday increased by UEFA from one match to three, meaning he will miss all of England's group fixtures at the finals in Poland and Ukraine next summer.
"I think the three-game ban is a joke," Moyes said.
UEFA's ruling has led to debate over whether national head coach Fabio Capello should take the Manchester United man to the tournament at all. Moyes, who managed Rooney during his formative years at Goodison Park, does not believe conclusions should be rushed to over the forward's selection.
"I don't think you need to make a decision just now," he said. "We are talking about it, but nobody is going to make a decision about it - there is still about six months until the summer time.
"I'm sure the manager (Capello) won't make a decision until then. You can decide then on a lot of things - the form of other players, the group, your chances of getting through, Wayne's form.
"So it might be better to leave the boy at home and get a good summer. I'm a Scotsman, so I hope he stays at home!"
Asked if he felt Rooney had been made an example of, Moyes said: "Yes, I think everybody wants to pick out Wayne.
"There is no doubting that Wayne shouldn't have done what he did. But I thought they (UEFA) would have near enough let it go. Wayne Rooney is one of the biggest players on the world stage - get him involved in the big games.
"If you want to have a big tournament, I think you want people like Wayne Rooney to be there. It wasn't right, but I think the three games is a bit excessive."
Source: PA
Source: PA