Sanctions are intended to impact both leaders and the people. One of the aims is to disenfranchise the people from their government and essentially encourage rebelion. I have no objection to banning Russian drivers, that country has invaded another sovereign nation and is at war, it is not "business as usual". Is this the fault of individual Russians? Mostly no, but equally any government can be overthrown by its people given the will. If the Russian state as a whole maintains its status quo and continues to engage with these actions they must be totally ostracized from the rest of the world.
If not, where do you stop? Russia invades Moldova and we continue? They invade Estonia and now NATO are involved, do we still allow their athletes to continue? If not where are you drawing the line? NATO is not the definition of when a line is crossed, in most people's mind the line has now been crossed.