The Nazi Party is legal in all states. According to your logic, the Jewish baker MUST!!! bake that cake for the Nazis and decorate that cake exactly the way the Nazis want it decorated.
The unfortunate fact of the matter is that Nazis are not a protected class while homosexuals, at least in Oregon, are. So Sweet Cakes, or your Jewish baker, could have refused to bake the cake and they would have been free from prosecution. But refusing to bake a cake for homosexuals or blacks or handicapped or any other protected class will get you in trouble. I'm not saying it's right, it's just the way it is.