Mike, you've made a good point. I used to think the term was funny until it was applied to me (and others) in the Arlo thread. It quickly lost its humor.

Still there is a lot to be said for disarming through humor. I love Lonesome EJ's mental picture because it is a charicature of Nazis that they themselves would hate. Given the choice at a Aryan Nation rally I would rather laugh at them than yell at them. Anger and hate are their stock in trade and plays into their hands. Laughing at them defuses them and holds them up to the ridicule they so richly deserve.

How about following Banjo Johnny's idea and coming up with another term? How about Folk Fascist? Same connotation but maybe not as pointed.