Not just a Nazi... a gay Nazi rapist. Because it turns out, every Neo-Nazi is actually secretly gay.

That entire sequence is so far out of left field in an already surrealistic film.

It also curbed the pace of the overarching (and escalating) theme of Murphy's Law applied to the zeitgeist; in many ways the movie embodied the end-result of Kaczynski's Industrial Society and Its Future (well before the manifesto became public), but then they had to go and toss in the "Nazis bad" narrative to subvert an otherwise awesome film.