You're absolutely right. It's really sad, and further proves that anti-Semitism just changes its form, it never dies.   

 In search of a compromise on "Jewish" vs "German-born, Swiss-American", may I suggest that both be included.  Based on WP:MOSBIO, "German-born, Swiss-American" is necessary for style considerations.  At the same time, MOSBIO suggests that ethnicity is relevant if important to the notability.  I agree with those here that say it is relevant.  His ethnicity shaped his ideologies, determined his citizenships, played a role in the acceptance of his work, and influenced many other aspects of his life because he was a Jew in Germany leading up to WWII.  Therefore, both are appropriate material for the introductory paragraph.  May I suggest:  "...was a Jewish, Swiss-American theoretical physicist born in Germany." or "...was a German-born, Swiss-American theoretical physicist of Jewish (persuasion/heritage/ethnicity)".    
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