If Second Life listened to everyone who whined about sim or avatar themes this wonderful place would have been gone a long time ago. Eurpoeans might not understand the concept of real freedom but this is an American firm and as such has every right to allow everything and it should too.
It is the ultimate expression of racism to allow race based domination & slavery (there are many such sims in SL) and then exclude Nazi fetish (a fetish that has been around for a very long time) and exclude Jews from enjoying a demented fantasy. It would be like excluding Blacks from BDSM slavery or Whites from dominationg other races among consenting adults.
It should also be noted that the so called Nazi symbol was also painted on U.S. Navy warplanes prior to WWII and many product advertizements in the U.S. prior to WWII as a symbol of peace and prosperity not to mention its use by cultures all over the world.