I think it increases readability. I need to read what I'm looking at, not a lot of things I'm not looking at.
Also word wrappings will lose all the preceding tabs. It makes it 100x harder to read.
The issue is I will have less split space.
This depends on your editor. I know VS Code supports indentation/alignment of wrapped words. I believe Emacs and Vim support it as well.
I don't think that's enough of a reason to say the design choice is a sin for everyone.
"But then I can't see as many windows!" That brings us back to the GP's I need to see what I'm looking at, not what I'm not looking at". When you want to look at those other windows, bring them to the foreground and let them obscure this one.
Another commenter replied that all editors have word wrap, but the resulting code doesn't look great, IMHO. I prefer full control.