Why this made me hate Nazism even more.

Nope. There is growing evidence that pornography has a disastrous effect on peoples' brains. Especially since the advent of Internet porn and with young teens getting their hands on it. In short, it produces measurable changes in brain activity, similar to what you would find in heavy drug users; it stymies the ability to delay gratification; it severely hampers motivation; it increases social insecurities.
This website is quite interesting: http://yourbrainonporn.com/
Regardless of the merits you may attribute to cabaret and other adult performance I find it hard to justify the kind of filth that is to be found online these days.
Of all the Nazi policies you could have mentioned this one actually seems quite reasonable to me.

While there may have been an over-represented Jewish or Zionist presence in the porn/entertainment of the Weimar era, as the Nazis preached, this does not in any way explain or exonerate the German "need" for porn and licentious entertainment. As with the case of illegal/unhealthy drugs, the suppliers only respond to the market. So German porn was at least as much a German problem as it was a creation of "degraded Jews". The Weimar Germans wanted porn, and various sources supplied it to them.

Moreover, in the US, legal porn is a form of protected free speech - as well it should be. Whatever consenting adults legally do is none of the government's business (although it could ultimately be so, in the sense that the government might get into "the Business" as it has with alcohol and tobacco!). That's one of Nazism's greatest gaffes: eliminating porn "for the people's own good" is, of course, fascism at its worst. No government has the right to so evaluate and prosecute. But what else would you expect from a system ruled by a dictator "from the top down"?