Call it an observation of human stupidity, sure. But, last I checked, we don't jail people for being stupid or saying stupid things.
edit: Something interesting I just thought of.
A lot of Islamic & Arab countries have laws in place that punish "insulting Islam". A lot of these "insults" (see Jyllands-Posten) seem to come from Europe, who advocate a huge amount of free speech. How can the laws ban one instance of hate-speech and not another? Is Satire or Humor allowed?
Again, if anyone can shed light on this matter, I'd appreciate it, but in countries like France or Germany, are there laws in place to protect against all kinds of hate-speech or just specifically Holocaust Denial?
The reason that this is punished is not stupidity. Publicly spoken words are never just an personal opininion, but have the potential to influence other people, and can lead to violent actions. In that case, the german constitution holds that the safety and dignity of the targetted people (e.g. an ethnical group) outweigh the personal freedom of an individual.
This trade-off has to be made somehow, and I would agree with the german constitution: personal freedom ends where other people get physically hurt or degraded.
Merely hurt or degraded? That is one hell of a low bar.
In addition it is a violation of paragraph 140 to publicly taunt or make fun of the belief or (religious) practices of any legal religious society. Nobody has been punished under this paragraph since the late 30.
But you are free to deny the holocaust or join a nazi group.
So by abolishing discussion you actually create what can be seen as proof of the false theory. Parents who believe this stuff tell their kids "it's a Jew cover-up" and use the censorship as proof. And since society has stopped giving the other side of the story those kids are left to believe the lie. Meaning the end result is we've made a ridiculous theory stronger by handing a whole new generation over to it.
Next thing you know there's some poor University Professor in a class full of kids who believe this ridiculousness because they've never heard the other side of the story.
Note that what really turned the public against McCarthy in his communist witch hunt was to experience first hand his vileness: "Have you no sense of decency, sir? At long last, have you left no sense of decency?"