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You can take anything and make it horrifying if you want. It's either a slippery slope or reductio ad absurdum.
This is a photographer that wanted to decline a customer, nothing more or less.
A business should be able to decide the kind of services it provides. If I don't want to bake a gigantic 5' swastika cake I shouldn't have to.
At the end of the day capitalism protects everyone against excessive descrimination - business that reject people get less money, fewer reviews, will grow slower, etc. If that business rejects your business someone else will provide it. If nobody serves a community, there's a business opportunity waiting. Etc.
I don't know how delusional you need to be to assume it could EVER be possible that somehow every business would just refuse to serve a population because of X characteristic.
I guess you've got a good point...its hard to imagine it could ever get that bad.
https://www.loc.gov/classroom-materials/jim-crow-segregation/#:~:text=Hotels%2C%20movie%20theaters%2C%20arenas%2C,maintained%20by%20uniformed%20law%20enforcement.