can we just clear this up by saying, the arguement's been had before, the main reason it's been banned previously is due to it being implemented incorrectly, and it's been decided that wrap is not broken in OU.
The way you deal with it is you don't let your whole team get paralysed, e.g. use chansey to get block status, after you've blocked sleep with something early on. You paralyse stuff aggressively, or play for freezes, or whatever you do, basically the whole thing is, don't get your whole team paralysed, don't let wrappers get up for free if you can avoid it (dnite's the only wrap sweeper I'll discuss here as it's the best at pure sweeping), you can carry a gengar to stall the wrap pp if you need to, you can carry rhydon or golem to stall the PP since every time you switch, the pp's worn away by 1 (don't let it roll over; count the PP; when it goes down to zero, stay in until the cycle ends, otherwise they get a fresh 63 PP); basically the list of good ways to beat wrap is:
1] Gengar - flat out stops it [Starmie and to a lesser extent Chansey stop cloyster; beware of freezes from blizzard; beware of explosion (that's part of why it's decent)]
2] Rock types [Golem, Rhydon, also Omastar is borderline viable (but not really top top tournament worthy)]
3] Alakazam/Starmie/Jynx - fast psychic types that can either OHKO (with JYNX's Blizzard) or Paralyse (with Thunder Wave) force them out. Obviously they're usually taking sleep, but carrying a second one's not unviable, they won't sleep every game, and wrap turns give them the opportunity to awaken for good measure.
4] Other pokemon - not letting them set up, so this means, always going for twave versus dnite when using chansey (they'll miss eventually, and then once you wrap them you can guarantee their defeat), body slam with fishlax (other variants might have to do different things, so when choosing your lax considering wrap might be relevant), body slam or blizzard with tauros (blizz does more damage, body slam has a 30% chance to make their pokemon's game over before it's started), twave with zapdos/jolteon, stun spore or explosion or sleep powder with exeggutor. Did I miss what to do with any other common Pokemon?
Also, Arbok's turn to set up glare makes it really really vulnerable to being paralysed by whatever, alongside its poor accuracy for glare (~90%?), alongside wrap's mediocre accuracy, and yeah don't let your whole team get totally paralysed is kind of a huge part of it. Just another reason why para'd chansey is good to have. Arbok also has huge weaknesses to ground/psychic which most of the tier can exploit, so it has a hard time coming in, a hard time spreading paralysis (outsource to another mon?), no way to boost its own speed (for the unparalysed tauros waiting in the wings), a much poorer attack stat than dragonite, and its weaknesses are more common than dragonites (see: probably 4-5 mons will have SE coverage on it rather than 2-3)