Kids do that shit, but adults shouldn't play into it.
When I was a preteen we had an art project making puppets. (Papier mache over a light bulb for the head then sew into a cloth puppet. I made adolf hitler, with the definintive mustache and little khaki shirt with swastica armband.
I don't recall any negative reactions from parents or teachers, tho I'm sure there were Jews at our school (German names are common in St. Louis so you can't easily tell who's Jewish) Anyhow, after learning who Hitler and the Nazi's really were I destroyed the puppet, smashing in the head with some violence.