If they blamed an ethnic minority group for all of their problems and supported them being publicly persecuted, legally disenfranchised of all rights and property, and then finally being shipped off to "wherever,"* then "yes" they were societally rotten, which is why they blindly obeyed a plan to invade neighboring countries and perpetrate mass murder across the continent.
*And we can cut the shit about the average German at the time being clueless about the Holocaust, they knew that whatever was happening to the Jews when they were rounded up and carted away wasn't pleasant.