Sure, that would have been ideal in hindsight but based on the scenario I described above, I would argue that the depositor is simply being prudent to withdraw

Sure, that would have been ideal in hindsight but based on the scenario I described above, I would argue that the depositor is simply being prudent to withdraw their funds from a bank if they are concerned about it’s stability. There is zero benefit for them to take the risk of leaving their funds with the bank and considerable downside.