Common, I indeed was not zoche to learn from R Miller in person, only from writings and tape, but I am familiar with his views on the topic. I don’t understand how his views on the topic contradict his equally strong views on learning from history (see above) and taking personal responsibility, like in his moshal of a kind person who invites a stranger into the house, goes to pour another cup of tea, and the crazy stranger meanwhile pouring hot tea into baby’s face. Someone would ask – how is the person punished while doing a mitzva of hesed?! The answer – while doing his hesed, the person did an aveira of leaving a baby with a crazy stranger – and was punished for that. Not understanding this leads people to say crazy things like we do not understand how Hashem can be so unfair (his words up to hear to my best recollection).
If you want to reconcile here the possible (unproven from the article) rudeness of Germans, you can say that Hasidim, while in the middle of their heilicke trip, tripped on following simple regulations and ahavas briyut, not talking about health of themselves and others, and were punished by given to the cruel German rule-enforces. Those who had masks on (if such exist) were punished for associating with bad neighbors and not preventing hillul Hashem. They were especially punished for associating this embarrassing story with a tzaddik who was such a gentle person that he would not even send a mouse to a galach if he was not prosecuting Jews.