It wasn't just the older generation of Germans who held on to "unreconstructed" attitudes. In the 70s (maybe 1975 or 76) I travelled to Ireland on an overnight ferry from Holyhead. I got talking to other young people there, in particular a young German, a little older than me perhaps. As the talk went on, he became very indignant- I had mentioned the concentration camps and the Final solution: "No, nothing like that ever happened! It's all lying propoganda!" was how I remember what he said.

Perhaps the real culprit in all this is the Cold War, the Western allies needing support against the Soviets, and not being too picky about whence it came. Here's a question- was deNazification more or less rigorous in the East? It's there that the main support for the neoNazis comes from.