This is basically essentially them saying that, yo, this isn't your money anymore once you deposit it with us. You no longer have the capacity to make your own decisions, and if you were to bank with us, you'd be giving up the control.
Think about how absurd it would be if a bank blocked transactions to the stock exchange, just because they seem to think that it's too risky. Think about
how much outrage that would cause - how everyone would be complaining about the bank doing this for their own good. This is exactly what Wells Fargo is doing. It's no different just because it's on bitcoin.
I wouldn't say that financial institutions are "increasingly pro-crypto", either.
They may be interested in developing their own cryptocurrencies, or even conduct their own trading activities; sure. But when it comes to supporting actual decentralized cryptocurrencies, which are what we're interested in, they're nowhere near that step.
Yes, Goldman Sachs is planning on launching their own trading desk, yes, Facebook wants to dip their feet into the FinTech world. But does that really matter when you realize it's got no aspects of decentralization anywhere, nor have they ever explicitly supported bitcoin as a movement? They're only interested in the profits, that is all.