Though I was not one of the blocking admins, I support blocking NSM88, and would reblock. My grounds are not "he is a Nazi" nor "he is disruptive." I was willing to block upon seeing his userpage and name.
The fact of the matter is, "National Socialist Movement Heil Hitler" is an offensive username. Putting Nazi images on your userpage has the same effect as an offensive username. No matter how good his contributions might have turned out to be, they could not be made effectively from that account. So I consider it to be, if anything, a special case of offensive usernames.
-Snowspinner