Who is an instructor to deny a member the use of their own facilities?
He didn't. He refused to fly with him, he didn't stop him from flying with someone else.
Anyone can be banned on grounds of safety and a FI would be expected to know when the bounds for their particular club had been exceeded and to take the required action. As somebody else has said, we have only the original poster's version of events so without the FI's, or an independent witness' account of events we cannot guess the true seriousness of the matter. We also have no idea of the ensuing conversation after which the FI refused to fly with the poster. Maybe the poster's attitude made a large contrribution to the decision. Would you want to fly with someone who you felt had endangered both you and himself and then became all self-righteous and stroppy with you? I wouldn't. I'm not saying that is what happened, I simply don't know if it did, none of us does, we simply do not have the facts.