Hi Crackers, I'm afraid you fail to see my point (or, despite my long post, I failed to convey the message).
You probably think that everyone sees the swastika (and other Nazi symbolism) as an evil thing. You probably think that everyone associates it with war, extermination camps, blitzkrieg, terror bombing, occupation, persecution and anything else negative about it you can think of. And you're right, fortunately most people do.
So you therefore probably also think that everyone who sees a model of the Bismarck, complete with swastika's and flags will say: "Hey, that's a mighty fine looking model, beautiful ship, only too bad it fought on the wrong side. Well, at least we sunk it after they put up a good fight. But we won!"
Wrong, in Germany, Austria and other countries large groups of people still have quite positive associations with swastika's and such. For them it stands for economic prosperity, feeling superior, culture, order, being part of something. When they see a model of the Bismarck they would probably (want to) say: "Hey, that's a mighty fine looking model, beautiful ship, only to bad we lost it, should've build more of those! Yep, those were the days, too bad about the Jews but hey, something had to be done about them, they would've brought the Reich down to its knees just like the first time. Yeah, we were a great nation but those @#$% Americans, Brits, French and Russians took that away from us.....again!" (I once met a German who actually told me this).
Quite a few political organizations are very well aware of the fact that those kind of sentiments still linger around in the minds of some people and they would sure like to use the old symbols to gather more support for their cause (whatever that may be).
The German government is obviously also very much aware of this and that's the reason why they put a strict ban on the use of these symbols by such organizations. Remember, in Germany and other European countries a party doesn't has to have an elected majority to end up in government (the NSDAP had only 43.9% in 1933).
If this ban at the same time has the consequence that you're not allowed to publicly show your historically correct Bismarck....well, too bad. It's only a small price to pay in order to prevent something much worse from happening.
I hope you understand now that the whole topic has nothing to do with the sensitivity of Europeans (or me personally as a Dutchman), that's a completely different subject. It also has nothing to do with what the Nazi's did to the peoples of other nations and trying to hide from it (they don't).
It has to do with what the Germans did to themselves!