the indiana law doesn't permit or endorse discrimination.
Discrimination is treatment or consideration of, or making a distinction in favor of or against, a person or thing based on the group, class, or category to which that person or thing belongs rather than on individual merit.
That's literally exactly what it does!
it's only usable as a legal defence if it the defendent can prove that the government's actions "substantially burden" the defendant's religious values.
There's no regulatory body to guarantee that's what's going to happen though. What religious beliefs are we even talking about here? Christianity? Islam? What if I'm a bus driver and a guy on a wheelchair shows up, and I drive away because I just converted to a new religion that ignores the existence of the disabled? What clause in that law prevents me from doing this?
you can't just make up some insane religion in 30 seconds and say that it calls for murdering gay people;
Says who?
it needs to be demonstrated that you follow an actual religion
What's an 'actual religion'? Is Christianity more valid than, say, Scientology or Pastafarianism? If we're going to be discriminating based on specific religions, you are now violating the first amendment.