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When you have a small group of customers that have determined your marketing/product line has to please them only, or that they must pre-screen and dictate what you are allowed to sell to others or face repeated boycott threats, informing the public with a sign is likely to increase sales traffic. You only boycott your own business when you let some fringe religious professional boycotting group dictate your policies.
The message is this - if the AFA calls you 100 times and demands you remove an item from your shelves, and 500 people find out they are blackmailing you and you agree to their demands, you are more likely to lose 500 people who no longer respect your business autonomy or your dedication to providing products for all your customers.
On the other hand, if the AFA calls you 100 times and threatens to boycott and you post a display honoring their intent by refusing to serve them (since that WAS their leverage) you aren't alienating ANY customers - they already alienated themselves by leveling their threat. You just backed it up by letting them know you'll enforce it FOR them and that your aren't in the business of catering to only one narrow religious belief that demands to dictate to others.
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