If he was going to dress as a Nazi he did it in the stupidest way possible, if he had gone dressed in a full SS uniform with the arm band he would have looked like he was mocking Hitler, going as he did in basically normal clothes with a swastika armband was a lot more stupid publicity-wise, but either way it was still a really stupid and offensive thing to do.
The drink and the cigarette helped with the mocking nature, and he was wearing a uniform, not just an armband over normal clothes, according to the story (and from the photo).
I know he was wearing a uniform, but not one that is particularly associable with the Nazi's, what he was wearing was basically desert camouflage, it isn't obvious it is meant to be a Nazi uniform (except for the swastika of course)
It was an AfrikaKorps unifrom.