I'm no expert on this topic, but you should keep in mind that Netanyahu's government is extremely right wing. These types of wannabe dictators only care about themselves.

Also, it benefits him if Jewish people can't feel safe outside Israel. "Us vs. them" is a powerful tool to keep his people in check.

Why are you surprised?
These horrible zionists are also 100% fascists, always had good relations with fascists, used and sacrifised jews before and during WW2 to obtain their own fascist state.

The far right in Israel doesn't care about the Holocaust. They literally view people who died in it as weaklings who didn't deserve to live, and survivors as cowards who should have gone down fighting.

https://www.jta.org/archive/behind-the-headlines-holocaust-restitution-deals-fail-to-engross-israeli-public-2

The Nazis sent Jews to Palestine themselves.

Bibi and his ilk don’t see a problem with the Holocaust. It happened to lesser people - people too poor to get out. (If you dig deep, sometimes you can find some racial tensions too - Ashkenazi vs Sephardic, claims about who Gods chosen people are that are cousins to the claims made by the White Identity movement. Or if you’ve ever met a “Cohen” that is very aware of what that name is supposed to mean….)

what surprises me more is that Netanyahu seems to be fine with it?

fyi: https://www.haaretz.com/israel-news/2015-10-21/ty-article/netanyahu-absolves-hitler-of-guilt/0000017f-dc2e-db22-a17f-fcbf7c1e0000

see also: https://en.wikipedia.org/wiki/Herzl's_Mauschel_and_Zionist_antisemitism and https://en.wikipedia.org/wiki/Zionist_antisemitism