That is such a big truck load of wrong! Whether it is a nickname or not, it is offensive. I was born in a country which was invaded in WWII and as a result have little love for the German people (Nazi type people) but this is not right. Terms of this nature make people regard those called by such names as being somehow less human than others.
I guess we should clarify, Hubby, who writes this blog, is German, but not a Nazi.