Another vote that this is an extremely normal haircut. Sure, it's a trendy haircut right now, but even relatively normal things can be popular at any given time. Doesn't make them inherently stupid.
I have a difficult time getting worked up about anybody's hair choices (I just look puzzled at those who worry about man buns and the like). It's just hair. It's a frequently-changeable accessory based on current fashion; nobody gets annoyed when the color of the season is chartreuse, so who cares if the haircut of the season is high and tight? I might notice if someone's haircut is particularly avant garde or particularly dated, but as long as it's reasonably clean and neat, it is of no consequence to my life.
As to the neo-nazi thing, white supremacists have very purposefully chosen to brand themselves with a look that reads as extremely vanilla and normal, in an explicit attempt to normalize their point of view and make them seem more relatable to other white people. Polo shirts, khakis, things like that. It's not an accident, it's a strategy. It remains to be seen whether that will fizzle out and we can all go back to enjoying the regular stuff that historically has not been associated with white supremacists, or whether they will be so successful in their branding campaign that they will have officially Ruined polo shirts for everybody else.