Before the rise of national socialism in Europe, Hindus used both (what later became) the nazi swastika and its mirror image interchangeably. Only after Hitler "stole" / "hijacked" it (and consistently used one version) did Hindus start to mostly use the mirror image of that tainted one.
The reason computers can display the swastika (technically: the reason there's a Unicode codepoint for it) is because of the original Hindu origin of the symbol. (In fact, there's four versions of the swastika in Unicode, both mirror images and both mirror images with dots between the arms.)
More information: http://en.wikipedia.org/wiki/Swastika
WarLight is about war; players naming themselves after historical military leaders makes sense. Pretty much by definition, all of their hands are soaked in blood. For a lot of them (such as Caesar), it's the blood of people nobody alive today knows they're related to, so most people don't get upset over it.
There is a couple of problems with references to WW2 generals. For one it is far closer; even if there's not a lot of people on here (maybe none at all) who actually lived through it, it's very very likely there are people here who lost family members (whom they never personally knew, but family all the same) because of WW2.
A bigger problem is maybe not the casualties of the war itself, but the countless deaths caused by the holocaust. While you can argue the war (and the deaths caused by fighting at the fronts and bombing of cities) are not solely
to be blamed on national socialism in Germany (the Treaty of Versailles hurt Germany so incredibly badly they had nothing to lose but everything to gain and is therefore at least a contributing factor), the holocaust on the other hand is (to the best of my knowledge) completely and entirely the sole responsibility of the nazi party.
But the biggest problem of all is that only nazi Germany was defeated in the war; the ideas of nazism where not
destroyed, they still live on today in some people.
So, when a player calls himself "Caesar", "Alexander the Great" or even "Rommel" (military commander, to the best of my knowledge not connected to the holocaust) it's a reference to military power and / or cunning. And even if you think they fought for the wrong side, the war is over anyway. But when someone calls himself "Hitler" (or "Stalin", or the name of any "Yugoslavian-born person currently involuntarily located in The Hague"), it's not so clear whether it's a military reference or a xenophobic / racist / genocidal reference... and it's very possible people are deliberately abusing that ambiguity.