I don't think the comparisons to the Nazis are fair or useful.

Why not ? The comparison is not about the "level of cruelty" or evil of the regime, but the principle. Will you do anything for profit ?

Totally agree Guillaume. I said this before, but i can't say it enough...

I think they should ask the Chinese governement how to say "f-you" in mandarin.

And
for the shareholders, they should know that to truly benefit from the
massive opportunity in China we need to first change their ways. What
better company to lead that than Google. No debate as far as i'm
concerned.

Comparisons, analogies and metaphores with the Nazi-era cannot be counted as a valid argument per se. See the Godwin effect:
http://clipmarks.com/clipmark/7F80604C-4F22-46BA-A85F-088C862CD097/

However, I do agree with the principle pointed to, which is that company's should not just comply with any local laws (for financial reasons); especially when it comes to crucial issues such as privacy, freedom of speech, etc.

Very interesting Djiezes...

From that Godwin effect clipmark:
"Hitler, on a semiotic level, has far too many negative connotations associated with him to be used as a valid comparison to anything but other despotic dictators."