If clips are actually promoting and inciting racial hatred, then yes, its a bad thing. However, we enter issues of context. To forget the holocaust and WW2 would be a crime, but censoring or banning all the old evidence of these things will surely have an adverse effect?
Germany already has a ban on all things Nazi, be it memorabilia, regalia, or symbols, but members of far right groups themselves have often said that banning the symbol does not stop the idea. Also, they are quite capable of making up new pseudo-nazi imagery. Germany has also called for their ban to be made Europe-wide.
Therein comes the major issue. The banning of all such things cause a lot of problems. For a start, it covers a great deal of legitimate material that is not pro-nazi. Museum pieces, literature, the film and game industries, all sorts of things. Could they have made Saving Private Ryan if no-one was allowed to have or wear SS collar flashes? Could they have made Schindlers List if Einsatzgruppen hats were banned? Not in Europe they couldnt. As it is, legitimate German films have to be made abroad, and German war films are some of the most accurate and least propogandist movies made. Stalingrad, Downfall, Das Boot.. theres nothing pro-nazi about those.
Anti-jewish films and literature are often utterly shocking, but also push the boundaries of credulity in their attempts to demonise the race. Anyone with a degree of intelligence and a balanced outlook can see it for what it is.. propaganda BS, and the educational value of these pieces is immense, as it makes it so much easier to see how a whole country was fished in to buying "The Jewish Problem".
As for the Landser videos.. havent seen them, so I cant say for definite exactly what military content they have, and in the context of usage by a pro-far right band, yes, its dodgy. However, this does not mean that every usage of such footage by a band makes them pro-right. Plenty of bands will use such footage in an anti-war and anti-nazi sense.
Conclusion: Be wary of context before banning things. Just cause its got Nazi's in it, doesnt mean its pro-nazi.
_________________
"There is a time when the operation of the machine becomes so odious, makes you so sick at heart,
that you can't take part" [Mario Savo, 1964]