Germany's suite of personal freedoms is comparable to that of Canada or the U.S. (I note that Canada has speech-restriction laws that would not be allowed in the U.S.).
Given that Nazism killed half their male population, destroyed their country, and got the carcass split up into four parts and occupied for half a century, I think a little extra sensitivity on the subject is tolerable.
Yes, considering the deep abyss that the NAZIs plunged Germany in to, it is no wonder that they will suspend their right to free speech for such a special case. There are limits to everything, I suppose and our own freedoms are never completely open ended.