actually, nobody cares; it has no essential relation to the Catholic service. Your little website still identifies its little cropped photo as "A young Joseph Ratzinger. Is he saluting? Or blessing?"
As far as your photos go, it is unsurprising that one has evidence of various idiots supporting the German government in the early thirties; it's common for most people to support their government. Of course, what happened next was that the Nazis disbanded all the Catholic organizations; by the end of the war, the Nazis had destroyed hundreds of Catholic churches and thousands of priests had died in concentration camps. And its worth noting that the totalitarian state made the stiff-armed salute mandatory:
Dilemma of the Salute
Jehovah's Witnesses found themselves facing daily situations that tested their religious convictions. The Hitler salute, which became law in 1933, required the German citizen to raise his hand or arm (a gesture reminiscent of the Roman salute "hail Caesar") and to say the words "Heil Hitler!" Germans had to give the salute numerous times in the course of a day—upon entering or leaving work and school, on the street, in shops, and even at the close of evening prayers.
The word "heil" in the German Bible is connected with "salvation" by the Christ, or Messiah (cf. Acts 4:12). Repeating the salute affirmed one's belief that Adolf Hitler was, in effect, the Savior of Germany. Witnesses recognized the unmistakably religious overtones of the salute and refused to use the greeting.
The Witnesses' refusal to give the Hitler salute served as a high-profile trigger for widespread and severe reprisals. Many Witnesses lost their jobs and were eventually banned from civil service positions. Children faced teacher-instigated beatings by fellow students and expulsion from school. Juvenile authorities removed over 500 children from their parents' custody and placed them in Nazi institutions and homes. Angry Nazi mobs ransacked Witness-owned businesses. Employers and social agencies denied veterans, invalids, pensioners, and the unemployed their social benefits ...
http://www.chgs.umn.edu/museum/responses/steyer/jWitnesses.htmlAfter the Nazis consolidated power, people were murdered for the most minor expressions of disagreement, like turning off a radio during a Hitler speech