Any reasonable observer acquainted with the history of Netanyahu, let alone the history of the holocaust, will immediately recognize the farcical attempt to pin the Final Solution on the Palestinians for what it is; pathetic hate-mongering against Israel's Arab population.
The German government's response is essentially "don't blame the Palestinians; we take full responsibility."
By taking that responsibility, the Germans have inadvertently made another point; relationships between peoples can, no matter how dysfunctional and hateful, be mended within a couple of generations. Seventy years ago it was official policy in Germany to exterminate the Jews. Today young Jewish Israelis are emigrating to Germany in droves.
Obviously things have changed.
They can change between Arabs and Jews in Israel too.