I don't think it's quite as terrifying as you believe. However, the centrists in Europe and the US could easily undercut support for nationalistic parties/ factions if they would just address the issue of immigration. Just like Bismark undercut Germany's socialists by embracing a few of their less radical ideas, so too could folks like Merkel undercut the new European right by making moderate adjustments to migration and border policy. The problem is instead of admitting there is a problem they just say that anyone who is concerned about large levels of immigration from countries with opposing cultures is a dumb racist bumpkin, which only feeds people into the right wing parties.
That is exactly what Mr. von Pappen used to say.