Excellent example of why giant instances are bad ideas. Nazis love forcing you into a "throw the baby out with the bathwater" type choice because it means they can continue their hateful, destructive, genocidal behaviors without consequences. They're usually not stupid, they know what they're doing is wrong, they just want to keep getting away with it. So they'll go nuclear on anyone and everyone in order to maintain their comfy corner of hate.

Any moderator (or stadium owner) who doesn't give Nazis jerking off in a corner a lifetime ban is negligent, as you said.