Depositors are not the ones that got Cyprus into trouble and has blown up their banking system and overall economy. The citizens and politicians of Cyprus are the ones to be blamed here. The blame should not be cast upon people who chose to store their money in banks in that country.
I do not think that the people of Cyprus should have the government pulling money out of their bank accounts. If the European Unit will not bail them out unless the government does this, then they should fight it. Their government should stand up and fix their problems without stealing from their people.
If the people were spending so much of the government's money and taking vacation days every other week wasting their own money, then yes they should pay for it. By the government taking the money from their bank accounts, it is just an overreach by the government in the form of harsh taxes.
This is another case where a government and the European Union sticks it to the average citizen. It wasn't the average citizen in Spain, Greece, or Cyprus that caused the problems. So, they should not be the people who are tasked to fix the problems. Unfortunately, this sort of thing is all too common in Europe now.