I remember our church doing a study on the book of First Peter, a few years ago. In the preparation for the study (which took 3 years of church services), I found out what that statement really meant. (Nero fiddled while Rome burned)
Apparently, Nero had a fetish for destroying things, so he could rebuild them. Eventually, that led to his burning of Rome. Well, many of the Roman citizens were none too happy about that, and demanded answers. Nero needed a scapegoat on which to hang the blame for the city's destruction. What group, either hated or perceived to be hated, could be made to blame for something that they did not do?
Were it today, it would be Republicans. Back then, it was the Christians. Nero blamed followers of Christ for the burning of Rome, and that led to some of the most horrific persecution, torture and death to ever be inflicted upon a people at that time.
One of the more brutal practices was to take a Christian, dip him in pitch (oil), set him in Nero's garden, and light him on fire...the light would illuminate the Emperor's garden. This, by the way, was the original meaning of the term "Roman candle".
It was more and worse than that. In the midst of such horrendous, undeserved suffering, it would seem natural not to go broadcasting that you were one of those Christians...probably wouldn't want to act like one, either, humanly speaking. It was in that context that Peter encouraged believers that they were indeed chosen by God, that they had a great hope, a great inheritance, even though they were going through great trials.
I know it's a little off thread, but the term "Nero fiddled while Rome burned" brought back that memory. Do with it as you will.
Great analogy - "Nero fiddled while Rome burned"