in an online community, who establishes the level of tolerance and extent to which something or someone is considered offensive? Is it the members of the community, whether all of it or just a vocal portion of it? No. It is the Webmaster(s) of said communities who establish the rules, laws, expectations, etc. that are to be abided by, wouldn't you agree?
No, I do not agree, but maybe it can be different in your country. Webmasters do not have the faculty to promulgate laws, allowing in the website something it is not legally allowed in the country. In the example of Italy, webmaster are responsible for the content of the hosted site, even if those sites are off national boundaries (pedopornography is prosecuted even if committed/supported off-shore).
So, the legal reply to something as nazi-apology is not left to discretion of people involved, or tolerance of the net-community : it is enforced by italian law (Legge n. 645 del 1952
http://www.stranieriinitalia.it/razzismo/scelba.html ) and nobody, not even the webmaster, could overrule this. In the case that happens, they have the civil-legal duty to take action or inform the authorities, according to law. That's why in my first post I wrote "You could create problems to the webmasters (...)".
Of course this is a last resort, because I guess that everybody should use his/her voice to invite a player to "avoid" nazi apologies.
About the personal feelings, that could bring one (not directly involved) to step personally in, making personally the request, or avoid to publicize the argument and make a private request to the webmaster, or just let it be and acting indifferent it is something that I leave to personal coscience. More specifically, to everyone tolerance, based on personal culture and personal inclinations.