*It was also a way for Germany to say, “See, it wasn’t just Germans that participated in The Holocaust.”*
What’s your point? It WASN’T just the Germans.
You're right, a lot of Austrians were also involved.
In the case of Demjanjuk, he was caught between a rock and a hard place, he was already a dead man back in the Soviet Union, and once in Nazi hands, had he not "volunteered" for guard duty, he likely would have been killed by the Nazis. I would just file cases like his under 'extenuating circumstances.'
And while there were cases of non-German nations engaging in atrocities, they never would have happened unless the Germans encouraged it.