Bad mistake asking gamers to comment on history etc.
Chances are several gamers on here have no higher education in history (German History mainly) or have done much in-depth unbiased research on the subject. I would take a bet that lots of people views are the product of Hollywood/Propaganda.
Should Hitler be in the game? There should be only one question - did his leadership impact history significantly? The answer is yes, thus he should be acceptable as a candidate for Germany.
Was Hitler evil? Evil in itself is up for the individual to judge. I would say that most people, aswell as myself, would say he was 'evil'. However he probably didn't view himself as evil - just a desperate man in desperate times. The humiliation and oppression of his people after the Great War ('stab in the back' 'treaty of Versailles'), the poverty and famine, the popular anti-semitism and anti-communism of the time, the failure of the Wiemar Republic, and the unification of the 'German people' (the early bits of land Hitler invaded contained German speaking peoples) all played a big part of shaping Hitlers view-point.
As for who's to at fault for the evil towards the Jews? Well as mentioned earlier it wasnt as simple as the German people knowing what was going on and letting it happen - most of the time they didn't know, and feared for their own safety. There was no vote on whether to make concentration camps or not. Ironically some historians suggest that the reason the camps existed is largely due to 'Furher Will' - the misinterpretation and abuse of orders from above - For example, after the Allies bombed 'German' homes, it is believed that the Nazi's decide to remove Jews from their homes and give their houses to 'German' people instead, thus the Jews were placed in camps. Sometime, if a commander said "deal with the Jewish problem as you see fit" then many would interpret this as killing the jews, without ever really directly being commanded it. I believe there no documents of any orders signed by Hitler authorising the acts that happened. It is possible that the whole situation got out of hand and one thing changed into another, like a snowball. Hitler may or may not of known what was going on (despite many believing Hitler somehow sat behind a desk and had some Master-Plan about every exact detail), and even if he did, he may not of been able to stop it (if he wanted to) because it was already happening and he didn't want to go against the tide and annoy his own Nazi's. As you can see, it's debatable how much control Hitler actually had, but it's safe to say that yes he was evil and disliked Jews with a passion.
It's funny because America fought against Hitler for 'freedom' etc, yet at the same time at home discriminated against black people and later communists.
As for Fascism = Evil, I'm not so sure. Yes a lot of times evil stuff happens, but surely this is because of the person in charge being evil, not because of the system. If someone like 'Jesus' or 'Buddha' was a dictator, would people be so quick to say all dictators are evil? Besides, strength can bring many good things - just like money (can be used for good, or abused - it itself isn't evil, it's the person in power). God is often seen as 'good' yet there are no elections for that

. Also, true direct democracy would be very slow and inefficient, and the only way people can be total free is probably through total-anarchy (no laws, no rules, no leaders etc).
Also as others have mentioned, lots of other 'evil' people are in the game, so the whole issue about him being evil is kind of irrelevant.
I would like to finish by saying I believe Hitler was evil and no way support anything that happened. Thank you.