Yes this is terrible. On the other hand, if your goal is to prevent people from signing up using disposable domains, the blacklist approach (which I have tried before) is a never ending game of whack a mole.

Sounds like this was in person at store though which is extra weird because seems unlikely that scammers would be trying to sign up en masse at a physical location (unlike if the form is connected to the internet)

Jeez, wow. How many domains were in that box?

"There are other emails besides gmail and hotmail? Woah!" - the person who thought that was a good idea, probably.

There is absolutely no way that someone who thought building a dropdown for email domain name is a good idea wasn't putting AOL and Yahoo! as the first two options.

Until about a decade ago, this was extremely common in Japan. RIP mobile email, another victim of smartphones in general and the iPhone in particular