Back in RBY, the only Dragon-type move was the laughable Dragon Rage, meaning it was a far cry from the powerhouse typing of later generations. Dragonite itself wouldn't even be noteworthy were it not for the broken Wrap mechanics. Although the original metagame developed without proper Wrap mechanics, and some still prefer to play with it banned, Dragonite is a potent force in the true RBY OU.
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No, Wrap never was banned in first place. It's always been around with low usages, also because the team that beats it is already being used: Starmie + Zapdos, there's no need to build teams that lose against most stuff. Wrap punishes Rhydon teams, that aim at stopping Zapdos - it won't stop Reflect.
So no, Wrap isn't banned in Gen 1 OU.
Hope this helps!
