I do feel it's a bit like comparing apples and oranges, because the welfare states of Nazi Germany and the Soviet Union, the very things that made them good, came with a horrendous, genocidal price attached. All the worse because it was arbitrary and unnecessary. But in many ways this issue probably highlights modernity itself: Whereas in the 19th century it wouldn't have mattered much if you had been born in Europe or Africa, your life was likely to be short and brutish anyway, it today makes all the difference whether you're born in the First or the Third World, just like it made all the difference whether you were born a Jew or an Aryan in Nazi Germany, or you were a model comrade or an "enemy of the people" in the Soviet Union. In these societies, the blessings of modernity came with a huge cost.
NB these observations are based on the Benthamian, utilitarian concept of "the greatest possible happyness for the greatest number of people". One would hope that the fact that this happyness came with the price of the lifes of millions of fellow citizens would reduce it, but so little is man's empathy with his fellow man (especially those he doesn't know) that it doesn't seem like these societies were less happy, or more civilized western societies are more happy for it.
Your remarks remind me very much of a book I just read, by an American historian of Nazi Germany and a German sociologist,
What We Knew: Terror, Mass Murder, and Everyday Life in Nazi Germany, an Oral History. The authors, Eric A. Johnson and Karl-Heinz Reuband, first surveyed and then interviewed people (both Jewish and Gentile) who lived through the Third Reich, primarily in cities like Berlin, Cologne, and Dresden. (Of course, many of the German Jewish survivors of the Holocaust landed in the United States and South America, where they were also interviewed.) To my mind, the most interesting points of this study, really the first of its kind, are:
Most German Christians did not feel afraid under the Third Reich. They were aware that they had to watch what they said, certainly. But they were also very much aware that unless they were outright opponents or "racial enemies" of the regime, they were for all intents and purposes safe from the Gestapo and SS, even if they occasionally stepped over the line, legally speaking. Most German Gentiles surveyed and interviewed were children, teenagers, and young adults under the Third Reich and recalled these years as exceptionally happy ones, before the Allied bombing raids began; even though they were aware that people around them, such as Jewish neighbors and communists, were disappearing into concentration camps, they didn't view this as affecting them in any significant way.
Extrapolating from survey data, at least a third of German Christians (according to the German author of the book) or even at least half of German Christians (according to the American author) knew that German Jews, and by extension European Jews, were being systematically murdered by Hitler's regime. Officers and ordinary soldiers, businessmen, railroad officials and other civil servants who visited or served on the eastern front brought back copious tales of the atrocities to their families and trusted friends. Hence the common expression, "Watch what you'll say, or you'll go up the chimney." The idea that most Germans "didn't know" is probably a myth.
So F.P. is right, I think, most people will put up with the most egregious crimes against humanity, as long as they are not threatened themselves and the quality of their overall life--economically and materially speaking--improves. It's depressing, but this scenario fits in with everything I've read about the Soviet Union under Lenin and Stalin (mass social mobility for some, massive suffering for the rest). With the important proviso that in Stalin's USSR, one in four families were directly and adversely affected by either collectivization or the Great Terror (i.e., relatives became "enemies of the people" and suffered the accordingly dire fate). That is a much, much, much higher number than you find among German Christians under Hitler, most of whom seem to have only known victims of the system indirectly and remotely, as mere acquaintances or neighbors.