Alas, for Silicon Valley Bank they went with 'too big to fail' and also covered uninsured deposits. That's moral hazard and endangers the core purpose of the insurance.
> [...] so had that been the only available option for making depositors whole, [...]
On paper, FDIC might be independent and have its own balance sheets. But in practice and given politics, FDIC itself can't fail / isn't allowed to fail. It'll always be bailed out, and that's what the market expects.
For the stability of the economy, it would have been better not to make uninsured depositors whole.