Bad taste can be controversial, but this goes way beyond bad taste.

I'm not sure why it's such a big deal either way. I mean this guy can't even finish a fucking sentence, let alone stand up and support himself. How the hell is his opinion, if he can even have one in this state, going to matter one way or the other? He probably doesn't even know what is on his shirt.

Sid on the nod

see the ideal for living e.p by Joy Division as well, whose name is taken a term using in relation to part of the concentration camps, part of punk was to provoke and question social norms, so agree with Eckle's point.

At the same time there was a strong Nazi movement in the UK at that time, the Clash performed at an anti nazi rally.

Yeah, Joy Division did get a lot of shit from the media about their name... and didn't they start having a lot of neo-nazis start showing up at their shows as a result of it?

I am quite sure Johnny Rotten wore a shirt with a swastika too. I guess Sid copied Johnny's style to become cool or trendy or whatever. It's quite obvious that he is not, nor was he ever a racist. It just had a shocking effect. One of my favourite Norwegian novels also uses this symbolism to great effect. I believe they thought it was obvious to the younger generation that it was ironic.
Laibach used (and still uses) a same kind of symbolism, originally to rebel against the communist regime in Yugoslavia by hinting that nazism and communism have more in common than the regime wanted to admit.

And, yes, neo-nazis showed up at Joy Division's concerts, but the band ended up fighting them.
The same goes for Laibach concerts. The occasional neo-nazi might show up, but he is then confronted by both fascist and communist symbolism..