Baron Cohen breaks it down thusly (courtesy of Rising Hegemon re: percieved anti-Semitism in the movie) [emphasis mine]:
Baron Cohen said the concept of "indifference towards anti-Semitism" had been informed by his study of the Holocaust while at Cambridge University, where he read history. "I remember, when I was in university, and there was this one major historian of the Third Reich, Ian Kershaw. And his quote was, 'The path to Auschwitz was paved with indifference.'Delicious irony is just freakin' wasted on the simple minded. Bloody fools.
"I know it's not very funny being a comedian talking about the Holocaust, but I think it's an interesting idea that not everyone in Germany had to be a raving anti-Semite. They just had to be apathetic," he said.