I don't think this question is really about Nazism. I think it's about the role of the German people in the Holocaust. One driving force in how Germans think about it is the 'clean hands Wehrmacht' idea - simply, that the really evil, anti-semetic and genocidal aspects of the Nazis were carried out by a small minority of fanatics, and the larger body of German society was unaware, unenthusiastic, and largely uninvolved. In this account, the Germans were among the victims of Nazism - it's a view really typified by the Reichstag Dome - where you can literally walk over, and look down on, the Bundestag. This dome was inaugurated as an expression of the idea that the german people should 'never again' be under the state.

Obviously, this kind of stuff is very comforting when you have to go to visit Grandfather Klaus, because he was (after all) a victim, rather than a perpetrator - and you can buy your good german products made by good german companies, and if they have a somewhat dark and disturbing past, you can remind yourself that they too were victims, in a sense.

Except, of course, it's not true. The Nazis were hugely popular with german voters. Anti-Semitism was, if anything, more popular still. The Holocaust largely consisted of massacres by normal german soldiers, and the Germans had explicitly genocidal aims in major policies (e.g. operation Barbarossa + 'lebensraum').

I don't think denialist arguments need to be taken into consideration when thinking of the holocaust. They are obviously ridiculous. What does need to be taken into consideration is the way in which Germans, and German culture, aimed to shield itself from its own pathological underbelly, while keeping hold of the economic spoils. After the war, everybody who was anybody had been a Nazi. Many companies were literally founded by the Nazis (VW) or got their big breaks under the Nazis (addidas, for instance). Everybody who was in the film industry cut their teeth on propaganda films for the Nazis.

One of the most awful consequences of this is the fact that, after the Allies left, most of the Nazis who had escaped execution in the Nuremburg trials were released, and those who had not been caught yet, were generally not prosecuted. If you read through the list of administrative personnel in a concentration camp, the majority usually escaped prosecution, or received short sentences (I recommend checking out https://en.wikipedia.org/wiki/Treblinka_trials - three years! For operating a gas chamber! And remember, it takes many more than ten people to run a camp. Or https://en.wikipedia.org/wiki/Belzec_trial - Of eight people they actually brought to trial, only one was sent to prison! Here you can actually see the 'clean hands wehrmacht' logic - they were all 'acting under duress!').

The West German unwillingness to find and prosecute the greatest criminals in history is the kind of thing any nation should be ashamed of, except instead, we just hear a lot of pretentious nonsense about 'remembrance culture'. The reality is, forget the average Wehrmacht soldier - if you were an SS officer employed at a concentration camp, and you avoided the soviets, and you didn't get hanged by the Allies, your chances of avoiding serious legal consequences were very good.