National Socialism was the ideology of the time. People who participated in WW2, at least outside of America, referred to them as the Germans. I think it is precisely because there is an effort to distinguish Germans from WW2 era Germany that people use Nazi Nazi Nazi instead of German.
It does lead to dumb shit though like Antifa idiots praising WW2 Americans for fighting the ideology when enlisted men at the time were simply defending their country. In fact, many Americans at the time who fought Germany or Italy probably had more in common with them than modern day Antifa.
It's also a strange phrase to use historically. It would be like me referring to the French from the Napoleonic Wars as "Bonapartists". That Britain, Austria, Prussia and Russia were trying to free Europe from Bonapartism.
Not to get too autistic about the technical terms, but before society became hyper political, people back in even 2000 when Megan was buying the memorabilia, it would have seen it as "German from the 3rd reich" not "Nazi".
Well Mussolini was a fascist not a communist but yeah. You'd be able to appreciate the positive aspects of your own ethnic culture, and even if it wasn't your own culture, you could still appreciate it regardless of what the regime did at the time. I'm not Japanese, but I really find WW2 Japan fascinating and the Japan leading up to it. Mention you have an interest in Japan though and people think you want a pillow of an anime girl and ask what J-pop band you like.