IMO, political correctness is essentially sweeping the underlying problems under the rug. Racism, for example, isn't gone when people don't use racial slurs. It's gone when they use them in jokes and they're understood as being just a joke.
Oh, I get it! Just like sexism is no longer a problem because we joke about women drivers all the time! (You are very wrong)
Until it's actually become nothing but a joke, you can't really say the serious version is dealt with.
One of the highest grossing comedies in german cinema last year, with over 2.4 million viewers (which is about the same as the first Avengers movie, to put it in perspective) was "Er ist wieder da", a film in which Adolf Hitler suddenly appears in modern-day Germany.
The fact that jokes about Nazis have become mainstream should tell you something.
Actually, both examples quoted support my position. Yes, I feel that the civilized world has largely (though not entirely) gotten over sexist attitudes. And yes, most people don't
actually seem have a problem with women driving, at least around here. Overt sexism is pretty much a joke, but it's still an area where some things are not allowed to be said. The US is a bit behind, and there are still things you're not allowed to say, but feminists have largely won their fight. Notice that most of the time we hear of feminists, they're fighting for
privileges or preferential treatment for women.
Of course, there's a chance that I might have a wrong impression. Sexism is something Poland (and the rest of the former Soviet block) is actually
better about than the rest of Europe, thanks to the Commies, no less. For everything that they did, the egalitarianism of the Communist ideology did extend to women and it was one of the few things in it that did largely work out.
Now, maybe I did get a poor impression from what German censorship affects media (especially video games), but it seems to me that swastikas, explicit mentions of Hitler and such are still censored heavily. It's not "anything Nazi-related", I did exaggerate a bit. Perhaps it's just video games, but note that comedic stuff is generally easier to get past censorship of all kinds (being explicitly a joke, not to mention parody and satire enjoys a degree of protection) than serious depictions. That said, if the Nazis are an acceptable subject of jokes now, it might be an indicator that the government is simply keeping useless censorship laws around and the German public wouldn't have any problems with having Nazis in video games.