It was clear to me that the video in question in the case was not glorifying Nazism - the person convicted stated he was sick of people saying his girlfriend's dog was cute so he trained the dog to do those things to both annoy his girlfriend as a joke and so people would stop thinking of the dog as cute because there's no less cute thing, in his mind, than a Nazi.

The fact that some neo-Nazis liked it is, in my mind, beside the point. I'm sure some neo-Nazis liked "The Producers" for, in their minds, showing that catering to the neo-Nazi crowd was profitable.