The government isn't an intelligent entity; it's made up of people. And people have prejudices, hatreds, fears, and worst of all, a pack mentality. Governments have the worst track record when it comes to oppressing minorities--why would we expect giving governments the power to censor speech help minorities?
>How can abuse ever be countered with economic boycott?
You can make the argument that by boycotting abusive business, like for example Chick fil A and their actions against homosexuals, you speak against the business in the only language they understand, money.
The government should decide because that's what the government is for. If the government doesn't get it right, then the people should hold the government accountable.
In my opinion, Western governments lack sufficient accountability, but I still trust them to decide more than I trust an all-or-nothing anti-philosophical principle.