If they have to block you due to law, then sure since it's not their choice. Signing a contract however hardly makes it any less discriminatory. Signing a contract that means you now have to block Armenians is like signing a contract saying you won't allow Armenians into your store or will refuse to sell them stuff.

Just because this type of licensing contract is common in the media industry doesn't make it acceptable. People should just pirate whenever they hit a wall like that.