"Nazi" in the modern colloquial context has mostly lost its anti-Semitic connotation and generally refers to someone being extremely strict and controlling -- fascist. It's also commonly used as a slur in politics.
Familiar examples:
- the soup nazi in Seinfeld -
http://en.wikipedia.org/wiki/The_Soup_Nazi- "grammar nazi", which Urban Dictionary defines as "Someone who believes it's their duty to attempt to correct any grammar and/or spelling mistakes they observe. Usually found hanging around Irc chatrooms hounding 'n00bs'." -
http://www.urbandictionary.com/define.php?term=Grammar%20Nazi - We have a few of these around here.
- prominent investor George Soros compared Bush to Nazis
http://www.youtube.com/watch?v=_DuafAqAHrc- anti-Obama protesters accusing his healthcare plan of being Nazi

Point is, while it's clearly an insult, and was intended as such, the idea that it was actually racist seems more than a bit of a stretch in the context in which it was used. He was clearly accusing azezzo of being a fascist, not a genocidal anti-Semite.