The Holocaust cannot be forgotten just as the Churban habayit cannot (until it is rebuilt bb”a). The problem is the cottage industry that has grown up around it with whole shelves in bookstores being dedicated to it. IMHO, this is obscene and counter-productive. We should be looking towards the future, building our state, always improving.
As for prohibitions on “racist” speech, that can be a double-edged sword.As Rav Zalman Melamed pointed out, one could make a case for the Havdala nusach (“who differentiated us from the other peoples”) as falling under the prohibition. Bettter to err on the side of free speech unless there is a real danger of violence.