This is a coward’s “solution.” The honorable way to deal with this is to simply refuse to serve the perv. They will take you to court. You will probably lose and be assessed a fine. Refuse to pay it. They will close your business and confiscate your property to satisfy the judgment. So don’t have any property. Lease all your hardware from a dummy corporation. Rent your storefront. Hide all your assets. But under no circumstances grant your tacit approval to this perversion. Early martyrs suffered the tortures of hell for their faith. Is it too much to suffer a little inconvenience?
Oskar Schlinder was no less a hero because the Jews he saved were supposedly valuable members of his production shift for the military industrial complex of the nazis.
You are 100% correct, or I should say, you *would be* 100% correct, if we lived in a law-abiding society. The fact of the matter is, we live in a lawless society and that is a much bigger problem than merchants being forced to engage in commerce they do not desire.
We have to get back on a law-based system before we can do much of anything else. The proposal in the original post is just a band-aid. The rest of what you suggest is dead-on, and probably necessary ground-work to get back to a society that follows its rules. We aren't there anymore.