I have several German friends (and a Swiss friend) and by European standards they are all quite conservative in their politics. They all hate the current neo-Marxist government, and fear for Germany's future...since it seems to be going on the "road to serfdom" in socialism again... All the Germans I know are decent, hard-working and thoughtful people, whom I could never picture following a neo-Hitler... Anti-nationalism has been drummed into their heads since childhood...and all hesitate to say they are proud to be German...such a statement is anathama to most Germans.
One shouldn't let the country's dominant politicians tell you whether you should visit that country. Perhaps folks should have done that to us in the '90s under the Clintonites??? Germany is a beautiful place--in spite of its horrible past. The population overwelmingly hates and is ashamed of the Nazis. I think part of the reason its so wacky socialist now, is that the former communists of the East are voting....(for communism-lite, ie socialists). When Schroeder's policies continue to damage the economy eventually they will throw the bums out...and put in more democratic/market oriented/sane politicians.
Still, I'd encourage you to visit. They will be very polite, the beer is great ( :D ) ...and its really a lovely place. We shouldn't hold their (grandparents') past and their politicians present against them.