Yea I agree. It's really weird that white supremacists are 'literally nazis' in the eyes of many Americans. Did the meaning of that word change recently?
Indeed it has; even the OED recognises this sense:
"c. colloq. Used to indicate that some (frequently conventional) metaphorical or hyperbolical expression is to be taken in the strongest admissible sense: ‘virtually, as good as’; (also) ‘completely, utterly, absolutely’.
Now one of the most common uses, although often considered irregular in standard English since it reverses the original sense of literally (‘not figuratively or metaphorically’)."
I don't really think semantics of literally matter in this case. In Charlottesville people were attending a "Unite the Right" event with actual Nazis .... If you are uniting with Nazis you're becoming a Nazi.