I don't know how to respond to this really. I wouldn't be able to tell you if this game is over the line or not without playing it. Even if it is over the line I do not think that it should be regulated. I think market forces will take care of this. If he made it though and Wal-Mart did not want to sell it that also would be acceptable.
Point is that this is such a sensitive subject that if you touch it at all, somebody somewhere might say "Ouch!" no matter how you go about it. The "old guy" might be right that this may not be appropriate for a game. IMHO if I was charged with making a game about the Holocaust, I would make it so vile and repulsive that many of the horror games would shake in fear. I would make the player hate the vile evilness that occurred so much that they could not sit still to finish the game if they were sane. That is truly the only way to handle this.
When it comes to the Holocaust, there is no grey area. There is only what happened.

















