While censorship laws in Germany against violence have probably been ramped up, against Nazism it's the same as it's always been - none. No Swastikas, no Hitler, no SS, no Nazis. If this were an adventure game the German market would make a huge difference - a normal action/adventure, no. I can get the Iron Cross, but to not even call them 'Nazis'? They have to change the voices into German anyway, so why not change the names then? They've made changes for that market many times, why hurt the other markets by keeping them the same now?
I suspect Fate of Atlantis will be similarly butchered.
Have we had any indication of any sort of multiplayer element other than the two-player co-op? Because that would be one clear reason why not to call them Nazis.
I'm... not quite sure what you mean there. To answer your question though: yes, there is multiplayer other than co-op. There's a biplane battle and a tank battle (although whether that one will be attacking each other IN tanks or ON the tank as previously indicated, I don't know!).
I'm honestly not sure of the argument against calling them Nazis. Political correctness? Are you worried we're going to be offending Nazis? Because that wouldn't do.
Offending Germany? I always thought Germany was lucky. When we think of the atrocities of WW2 and the enemies to shoot in war movies or games like Call of Duty (or indeed Indy) we think
Nazis and not
Germans. This has allowed us to mentally and culturally disassociate the two, and when we look at all the terrible things that happened in the war we don't blame the Germans. Compare this to the Chinese, who still bitterly hate the Japanese for what they did in the war. Apart from in football us English don't hate the Germans at all anymore.