I think choices are fantastic and I do try to give them whenever possible and feasible. It allows the child to feel in control of themselves and how else will they learn to make decisions? I know for myself, if you TELL me to do something ALL the time instead of letting me decide for myself, I am not going to be a happy camper!! Ha Ha. Decision making, rational thinking and feeling of self worth are just some of the reasons why I think choices are wonderful and should be given when the opportunity arises.
HOWEVER, there are times in life when choices just aren't an option. Sometimes we just have to do things a certain way to get it done. Asking a 2 year old when they would like to be picked up is absurd IMO.
For the most part, I would just grin and bear it as I do think each parent has the right to parent the way they want. If it was getting out of hand and disrupting the other children than I may gently step in and tell the child something like, "Mom has given you two choices. Please pick one or 5LM is going to pick one for you. This is silly behaviour and you're upsetting your friends." I have only really stepped in when the children start being aggressive to the parent as I feel that is just disrespectful and there is no need for that and the other children don't need to pick up on that behaviour either!! I also feel that it is embarrassing for the parent and I feel too guilty for allowing it to continue in front of me.