Refs got it right. You can argue whether what Wolfe did should be a reviewable, flagrant foul, but under the rules it is.
I haven't read the rule, and you may be right, since I know it is written pretty strictly, but i thought there is a smidgen of latitude for elbows that happen within the normal flow of a game. Sometimes a guy swooping in for a layup or a block will hit a guy with an elbow on the way down or follow through without even being aware of his presence.
Now, Wolf may have just barely turned enough with his elbows out for the refs to feel like they had no choice, but clearly he was protecting the ball while looking for an oultet pass and the tricky thing with elbows are that you can't remove them from your arms. And there is really no other fundamental way to do what he did. If he holds the ball down around his waist, he can't outlet quickly. If he bear hugs it, he can't throw it all. And if he holds it out with both hands without having his elbows out, he will immediately get it stolen, or get a held ball.
The St. John's player could have really been ejected as well. That was a premeditated flagrant outside of the flow of the game and could have been interpreted as a deliberate attempt to injure.