An update (take it or leave it) :
Despite it clearly being a wrestling angle for the sake of entertainment (and a tired one at that, everything from Seinfeld to That 70s Show has provided a spoof) Bradshaw is taking major criticism for his Nazi salute during his match in Munich over the weekend. Fans have threatened to not only report his actions to CNBC, but to contact the German authorities to encourage prosecution.
In terms of the lockerroom, most were generally disgusted by his actions and it certainly appears they were not "scripted" by WWE management but rather Bradshaw taking license with his character. Of course, the lockerroom is very anti-Bradshaw right now in general, so a negative reaction had to be expected. Nevertheless, no one was proud of what he did.
Cred: Lords of Pain.net