That routine overrides OnAfterRetrieveData of the UniSelector which is defined in the ASCX code for the ShippingSelector as:
<cms:UniSelector ID="uniSelector" runat="server"
ReturnColumnName="ShippingOptionID" ObjectType="ecommerce.shippingoption" ResourcePrefix="shippingselector"
SelectionMode="SingleDropDownList" AllowEmpty="false" UseUniSelectorAutocomplete="false" />
You can see that the UniSelector is set to load objects of type 'ecommerce.shippingoption' and hence it would just pull a list of all the shipping options. That is why after the UniSelector pulls the data each entry is checked by the routine you posted to see if it is applicable to the current shopping cart or not.
As I mentioned in a previous post, I wouldn't mess around with the controls. I would either go the route of implementing a Carrier and having the administrator add each service (or do it dynamically on a periodic basis), or just implement a Custom Shipping Option Provider.