People like Alan Dershowitz love to talk about him because that way they can accuse the Palestinians of not being "innocent" in the Holocaust.
Of course, but Dershowitz and others like him use it to try to counter the Palestinian argument that the Palestinians were unfairly made to pay for a crime they were not responsible for. Obviously, as you've alluded to here, it's a very weak line of reasoning because even leaving aside the dubious morality of collective guilt, there was a lot more participation--and willing, not coerced participation--in the Holocaust among most (though not all--paging Denmark) nations that were conquered or heavily occupied by Germany that anyone could ever argue there was among the Palestinians.
Another argument of this sort is that the Palestinians were culpable in the Holocaust since they agitated for Jews to be prohibited from coming to Palestine. But again, the U.S., Canada, and most other nations had limits on Jewish immigration, so to single out the Palestinians is unfair. Particularly given the fact that by that time, there was a strong movement to create a Jewish state, something that would clearly have adverse effects on the Palestinians themselves.
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