Right: video games share part of the blame by rendering Nazis not as perpetrators of atrocity but rather as all-purpose generic bad-ass villains.
those two seem to be mutually exclusive
writers/designers like Nazis not because they're generic but because they were horribly weird, they were associated with multiple mystic organizations like the Ahnenerbe and the Thule society, they worked on crazy engineering projects like superweapons, megacities, and rocketry, they did lovecraftian experiments on people in concentration camps
the reason people use Nazi Germany in their media is because they were extremely interesting
I'm simply saying that movie producers and game designers don't cast Nazis in the villain role because of Nazi weirdness. They do it because we all agree that Nazis are, almost alone among historical western adversaries, categorically and indefensibly evil.