The problem is not that a corporation can do something that an individual can't. It's that you can't punish a corporation the same way you can an individual. Corporations cannot sit in a jail cell.
> Second, incorporation does not protect the business
Your Third point kinda disproves this. You have to "pierce the corporate veil" in order to hold individuals of the LLC liable and this is generally w.r.t. an LLC commingling its funds with the owners funds. Not to do with an Owner doing an undesirable/illegal act (say fraud).
> Third, ... happens all the time in lawsuits against small businesses.
I'm not really sure any of these points counter-act anything I wrote. I explicitly called out Wells Fargo and you responded that small business routinely get attacked. Wells Fargo is not a small business.