Actually there is still much confusion about this topic here in Germany. 60 years after the war you have of course many people not taking these laws too seriously, displaying the swastika, or making fun about the whole topic (just look at the growing number of Hitler parodies in the recent years). You must realize that most people alive today have not lived during the times and have practically the same relation to it than most of you. And it makes of course a difference if you do these things in your home or at a monument for Nazi crimes or in front of Jews.
So, of course you have people using the swastika in computer games, but it is of course not something that is sanctioned by the law.
The laws might be a bit paranoid, but I personally feel it is still better than having people waving Nazi flags in a demo and nothing the police can do about it.
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