>The actual baker situation was denying a customer based on their sexual orientation. That type of refusal is not okay and the reason why is pretty well-established in the law. Sexual orientation (like religion, race, sex, etc) is protected from such discrimination.

This is not true. They were perfectly happy to bake a cake for gay people; they objected to baking the cake specifically for a gay wedding. The cake was to have wording which the bakers disagreed with for religious reasons.