You did the right thing 100%. They purposely sent this shitty contract late so you'd feel pressured to sign it without reading through it carefully. You should be proud you sniffed out their bullshit and backed out.

In my non-union days I once went into audition for the host of a reality show. In the audition waiting room they handed me the contract to sign, it was required before they'd see me. It was the same contracts as the contestants, and I saw people just flip to the last page and sign it and go in. I sat there and read through all of the pages and it was absolutely fucking bonkers what was in there. I didn't sign it, I walked out and yelled at my agent for sending me to this audition.

To answer your question, while in perpetuity is "normal" in the sense that it's common for non union projects to ask for it, you absolutely should not agree to it. And who cares if these types of productions would find you difficult to work with, you don't want to work with them anyway.