I Likes my Nazis bad.
Had the Nunchaku clothes hanger dude just acted as blandly as the soviets did, Raiders couldnt have worked.
Indy is an morally ambigous role. So you REALLY have to have a decent bad guy/total and utter bastard to balance that against.
If the raiders Nazis were "Nice" Nazis, it wouldn't have worked.
Yeah peeps can be mean... but in general I like baddies that have more ambiguity to them. They make a longer impression. For instance, compare the baddies from Die Hard 1 en Die Hard 3... same family, same opponent, same intentions... but Rickman's lasts longer than Irons'. Why? Because we don't really get a grasp on what he's after, plus he's charming as well. Irons' baddie is just out for money and revenge.