Mark Steyn puts Prince Harry's Nazi dress-up moment in context:

Personally, I found the sight of the Prince of Wales climbing into the full Highgrove hejab for dinner with that bin Laden brother a week after the 9/11 slaughter far more disquieting: it seemed a rather more conscious act of identification than his son's party get-up. But a good indication of societal decadence is when it prefers to obsess over fictional offences rather than real ones.

I suppose it's possible that, should fate bring Harry to the throne, he'd turn into a Victor Emmanuel or King Carol of Romania and lend a constitutional figleaf to some Fascist regime. But worrying about a minor Royal schoolboy's alleged Nazi bent seems something of an indulgence at a time when the neo-Nazis get as many votes in Saxony's elections as Gerhard Schroeder's Social Democratic Party; when from Marseilles to Paris, Jews are being attacked and their homes, schools, kosher butchers, synagogues and cemeteries burnt and desecrated in a low-level intifada that's been going on so long the political establishment now accepts it as a normal feature of French life; and when the Berlin police advise Jews not to go out in public wearing any identifying marks of their faith. It's not just Nazi insignia you don't see in Germany these days; Nazi wise, the uniforms are the least of it.

Update: James Lileks (in a pretty brave column for a blue state newspaper) wonders what sort of reaction Harry would have received if he had been photographed "wearing a hammer and sickle or a Che shirt".