Anti-discrimination laws also mean the scenarios I mentioned above would also apply. Are you really sure you're okay with that? Would you be able to force a Jewish bakery to put a swastika on a cake? You're a far braver man than I...
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Nazis would not be a protected group in the anti-discrimination law, and I would be OK with that.
I don't think you fully understand how this works...
Sure, nobody in their right mind would ever openly say they're a nazi. They deserve all the ire they get. At the same time, you cannot stop someone from wanting a swastika. They're not actively engaging in eradication or discrimination by ordering a cake, so the law holds no teeth against them. On the other hand, denying them service, however abhorrent, would be illegal. By siding with the bakery, the courts have allowed your ideal scenario to prevail. The bakery is able to say, "no, I think this is awful and I refuse."