No, the New York Times isn't normalizing Nazis.
Yes, this story could be better — for it to have some meaning, we'd get some insight as to why Tony Hovater became a Holocaust-denying Nazi sympathizer. But the critics go further, saying that the story "normalizes" Nazis. I dunno. Not sure how you can read this and think "gosh, that's normal": Or this: It's true, the story doesn't spend a lot of time screaming "this is bad!" But I suspect that's because the NYT editors know their audience probably doesn't include a lot of Nazi sympathizers, or even many folks who are Nazi agnostic.