The question over whether to ban it has been ongoing throughout the community.
Make no mistake, it's a game-breaking combo. The problem is not that it kills a character; there will almost certainly be non-infinite 100% combos in this game's lifespan. The problem isn't even that you can't counter-switch out, or that it doesn't require meter. The problem is that it's easy, boring, and takes FOREVER to kill. In the offline-console era, web-reality-web would have to face a hard ban, or the game wouldn't be worth playing.
The thing that's confusing to me is how this combo is even possible. Reality surge and web ball both ignore HSD, which seems dumb but whatever. But why isn't there a trigger on multiple capture states, or at least multiples of the SAME capture state? And why isn't undizzy triggering after 20 reality surges or 20 web balls? The undizzy system should have prevented this from jump.
edit: That last video explains it: undizzy literally only applies to LP. It should be applied to everything.
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