The stuff with the blood is still done, but it has nothing to do with the above one. Nazi symbols are illegal, shooting at humans with real gore and blood "just" makes a game getting rated so that only mature people (18 and above) can buy those. But that only matters for games you want to sell in germany, not for games you release to the net.
So e.g. Doom 3 can only be bought by showing your passport and verifiying that you're old enough and the distributor is also not allowed to advertise for it. And there is also e.g. a german version of Quake 4 which is heavily cut, and which you can't use to play online with players from different countries.
But that's actually not different from movies here in germany, where you can get the bloody uncut ones (like Braindead and stuff) only if you're old enough.