What's wrong with the name? I don't find it particularly offensive. In this I can only speak for myself though
Seriously, I can't understand how someone can create a clan named after the most worthless dickheads that ever walked on this planets surface.
No, no, no, the SS weren't dickheads any more than you are. The SS were a special forces unit that, although killed a few jews, were only aroused into hatred and violence against minorities just like the entire Germany was.
Though I don't find genocide the most subtle way to resolve cultural differences
Both sides need to understand the cultural barrier that is between you. In central Europe, this heritage is something people don't talk about that much, a tabu. In Finland, that luckily avoided the worst crap given by the Nazis (instead received a nice stack of weapons to kick the Russkies' arses), this is not such a tabu anymore. So here this subject is more open for conversation, even for jokes sometimes.
However, because the name is found offensive/immoral by the majority (?), in my opinion, the name should be changed.