That's one reason why we're "The Land of the Free" and Germany isn't.
Germany, like most of Europe, is too politically correct. However the fact that they ban Nazis makes perfect sense. At some point you have to limit the freedom of criminals who would destroy all freedom. One of the failures of the Weimar Republic was that the legal system was too weak or corrupt to crack down on Nazis (while the Nazis were still a fringe group) when they had actually committed crimes like terrorism. This is the essense of the controversy going on in America over how much "freedom" the country owes terrorists.