You are not wrong on any part of that history. Yes, the war is over. Today, Americans and Germans are connected as part of a global economy. Surf parents own VW stock. FRAM's halftime snack is sauerbraten. Legends' fathers wear lederhosen. Slammers mothers coif their armpits in ancient Teutonic fashion.
But I don't buy the "sins of the father" argument. You wouldn't put the Confederate Flag on the US national uniform, even though nobody alive today fought in the Civil War. That would send the wrong message, and the passage of time since the Civil War doesn't change that. I feel the same way about the VW logo.
You don't have to look too closely at the Mississippi state flag to see the similarity --

