The Na[i]z[/i]i allegory is far too obvious. You'd have to "reveal the monster" in a more subtle fashion.
Plus it will be harder to swallow than most dystopian stories. Many dystopian stories allude to Communism, not Facism, because modern civilization is on a far more Communistic road.
No one is worried about neo-Na[i]z[/i]is. There hasn't been a serious neo-Na[i]z[/i]i movemement since the 60's and even then they were against violece.
I suppose it [i]could[/i] happen and it is fiction after all. But people won't be able to relate to it as easily.
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That's a very good point.