I'm going to move to an uninhabited island when they make the unattractive, fat or smelly a protected class. And some would consider me to be unattractive, fat and smelly...It's only a matter of time. It's already illegal to refuse to associate with certain people of protected classes.
I hate antisemites. But that doesn't mean I think they should be forced, under penalty of law, to hang around with Jews.
I generally agree with your argument except that "corporations" are artificial entities established to protect their shareholders from individual legal liabilities. In exchange for this wall of immunity, the corporation is subject to regulation by law...Such as the law in question.
I agree with you 100% when the business is privately, rather than publically owned.