I think the real problem is actually the reverse of how most people are looking at it. We shouldn't be trying to decide about whether or not to give exemptions to discrimination laws. (Just hear me out) We should just eliminate discrimination laws altogether. If people want to discriminate against other people (as long as they are not breaking any other laws of course) let them! If they do so unwisely, the market will punish them accordingly. If someone doesn't bake a cake for someone, they lose out on business. If someone doesn't hire women, they will miss out on all the benefits of having women working there and someone who does hire women will out compete them. Discrimination is a self solving problem. And making it illegal is unenforceable anyway. There will always be bigotry in the world just like there will always be jerks, psychopaths and every other degenerate group. And we should treat them all the same, ignore them and don't do business with them.