The situation of Wolfenstein in Germany is very complicated, and I agree to the modifications for very different reasons than those laws.
It would be unacceptable to release a game like RtCW in Germany, not because of Nazism or anything of that nature, but because they are germans! Sure to you it's all fun and games to shoot at Nazis, but in Germany this could be a very different picture. Those Nazis were the fathers and grandfathers of the people who play the games. Sure they bear a Hackenkreuz, but blood is thicker than all that. For absolutely no reason would I fire on my family, would it be Christ, a Nazi, Adolf Hitler, George W. Bush or the Antichrist himself.
Germany was hit hard by wars two times in one century, and still managed to come out "on top" of things. This is no laughing matter, and if anything they deserve a large quantity of respect. At least they have mine.
I don't know how people in america would react to a game that was the exact opposite of wolfenstein, a "divine" SS hunting down (alone) all americans, who are "evil" "wicked" and "bad", trying to resurrect the evil "George Washington".
I play RtCW because I find it is a good game and I am attracted by the graphics (who isn't?). But I prefer to think of B.J. Blaskowicz (what the hell?) as a killer rather than a soldier. I convince myself that if there was an allied soldier by my side I'd kill him too, and it all makes it easier to swallow.