First off, the right to refuse service to someone in your place of business extends far further than "blacks". Don't make this an issue of racism; at its core, it isn't. Just because some idiots use this to justify some form of their own bigotry doesn't change the fundamental principle at work.
Second, the two scenarios are mutually exclusive; there's nothing about "prioritizing" here. I'm not asking you to be the cop trying to decide which situation to respond to. I am saying that you're using fallacious logic (enacting a law >> more law enforcement required to enforce it == bigger government, so opposers of bigger government should oppose all laws) to try to support your argument.
Your original assertion is also wrong. The "amount" of government IS a quantity. It can be quantified in the number of laws that need to be enforced, in the number of people it employs, in the amount of money it demands from its citizens, and probably by several other metrics as well. Most people, whether libertarian, commie, fascist, or other, believe that SOME amount of government is necessary; they just disagree on how much, and which specific parts of the government are required. But it can definitely be quantified.
I agree that the other poster's statement of "the larger the government is, the fewer choices people have" is incorrect, but mostly on the grounds of being incomplete, not for being fundamentally misguided. A better way to phrase it would be this: each person begins with total freedom, and every law the government enacts restricts that freedom in some way. Some of these laws are clearly beneficial (e.g. a law against killing another person, properly enforced, ensures a level of safety and trust that is critical for advanced society to exist at all). But at some point, government can enact too many laws and infringe upon too many freedoms (e.g. Prohibition). And it's much harder to get a law repealed than it is to get one enacted, unfortunately. That's really the point of the Constitution: a safeguard against laws being passed that infringe upon our most sacred freedoms. Unfortunately, that safeguard is only as strong as the people enforcing it (the judiciary, in this case). And letting the judiciary be chosen by one of the two branches in charge of making the laws (don't act like the executive branch hasn't swerved into law-making territory), the whole system threatens to fall apart.