There are many unflattering terms that can and should be used to describe George W. Bush. He is, among other things, a truly bad President. But neither his offenses, nor the Republican Party's politics of personal destruction, can justify using such tactics against him. Imputing Nazi sympathies to the President or his family ought to be beneath his adversaries.
Odd that this has gotten traction. There's nothing here -- GWB's grandfather made some dirty money and was a good senator later on. Makes The Shrub seem more Kennedy like I suppose.
My dark suspicion is that Karl Rove wants to keep this story alive because it's silly, and it lets Bush act aggrieved. Time to forget it and talk about Bush's real failings.