... typical Daily Mail bullshit, but having done some reading around various German language sites it seems for once the story is true.
Don't get too excited, though. In spite of what the Mail might imply, Germany is not full of neo-Nazis clamouring for a Fourth Reich. Leaving aside the small neo-Nazi minority (and that bunch of cheating bastards they call a football team), most Germans are actually quite normal.
Spiegel often does articles on "Die Nazi Ära" (and there is usually something on TV about the whole business), always well researched and well presented. A few months ago they had a special on Himmler in which one of his great nieces went on the trail of her famous ancestor. It was anything but a sympathetic portrayal.
http://youtu.be/x80RGYXFm5QI've put the link here to the DVD they included, but there is no English language option, so, you'll just have to bloody well learn German then, won't you.
But please, bear in mind, she is an out-of-time anomaly. The vast majority of Germans would be as shocked and bewildered as anyone else at the old bag's behaviour.