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With individuals, criminal insanity means that you can’t be held accountable on account of not being able to tell good from wrong: Lacking that ability, you cannot have an intent to do wrong. It’s also not a get out of jail free card, it’s quite often a get locked into a closed institution for an indeterminate amount of time card, until the doctors decide that you’re not a danger to yourself or society. Being judged criminally insane can turn a five-year sentence into de facto life.
And it’s not like I personally agree that the notion is really applicable to a people, or that it should be considered when it comes to the genocide convention, but damn someone has to be their defence lawyer – they certainly aren’t capable of defending themselves, pretty much everything they say just makes people more mad, justifiably so. Given Germany’s history don’t blame us for taking on that role.