She dedicated the live performances of this song to [url=http://en.wikipedia.org/wiki/Andreas_Baader]a communist[/url] and said she intended this song in the same spirit as Jimi Hendrix meant his performance of The Star-Spangled Banner. Yeah, pretty sure she wasn't a Nazi.
The reason she sang the first verse was that she lived the consequences of it in her childhood and it scarred her forever. Her father died in the war and some of her earliest memories were of hiding in a bathtub during air-raids, and seeing piles of bodies at the end of the street where she grew up. It's a wry, bitter and heartbreaking expression of the point of view of all of those who suffered the Nazi party's destructive folly. And for that reason, that first verse should never be forgotten.