While it is a shame that such an ancient symbol has been so heavily tainted by it's association with Nazism, and I hope that someday it may be rehabilitated, the kid was a total idiot and got what he deserved. Context matters.
Given how many people the Nazis killed (It wasn't just Jews if you may recall), I don't believe the swastika should be rehabilitated...unless you're in India. Since India is it's original home, I see few problems with it there...but nowhere else.
It is not just in India it is used (
http://en.wikipedia.org/wiki/Swastika). I think more should be done to separate the Nazi Swastika (tilted 45 degrees) from the rest, though I guess it would be a bit of a mission impossible.
