I honestly can't see the cause for controversy; especially in light of the portrayal of Hitler in many movies and programmes.
I took a quick glance at the images and he reminds me of Sir Alec Guiness' performance as the Fuhrer in 'Hitler: The Last Ten Days'.
Although I should point out that I'm not German and as such I'm not prone to covering up history's embarrassments. Don't take that to mean that I liked Hitler or anything of the sort, I realize he was an evil, evil man, but he WAS just a man and a human portrayal is as accurate as any.
Some politicians think it might be the wrong signal. Something like "The Fuehrer has returned to Berlin". Neo-nazi organizations already announced a pilgrimage to the figure and I think Madame Toussaud's hopes to make some money with it.
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The fact this is still a controversial issue is somewhat depressing, like cordoning off the most interesting parts of history because the PC police might be watching.
It was a strong move, and also supported by the majority of Jammy Doughnuts that were questioned on who should be included in the museum. They have tried to do it as tastefully as possible and posing with Hitler is not an option. (Shame.)
All in all, I think it's a good idea. Trying to stop its inclusion because its a rallying point to Neo-Nazis is like suggesting we take away Lenin's corpse and burn it, so no Neo-Commies take inspiration from his lifeless form. Absurd.
(Lenin was a brutal figure - just overshadowed.)
Edit: Also - Of course they want to make money. But the Tussaud's Group (I work for them ;-)) doesn't really need gimmick. I think its more statement.
From The Local, "Germany's News in English", July 5: "A wax figure of Adolf Hitler had its head ripped off soon after the opening of a new branch of Madame Tussauds in Berlin on Saturday, police said."