Michael Steele is the one who should have objected in his face, since he was the guest to whom the statement was made.
Unfortunately, there is too much pandering going on.
Republicans have become so used to hearing we are ‘nazis,’ we’ve become immune and don’t even hear it any more. The word no longer has meaning. Same as overuse of the word ‘racist.’ By repeatedly (incessantly) and falsely using an epithet, the weight and value of the word is lost.