As a Jew, I agree with you. Condemnation--sure, Government investigation--no.
The problem (among many) with these hate speech laws in Europe is, after the initial hit, the aggrieved party sits and waits for the government to prosecute the speech. In America, the news media immediately looks to the aggrieved party for a response and the perpetrator becomes a pariah.
Free speech leads to more civil discourse in the same way that lowering tax rates increases tax revenue: You don't expect it to happen, but there it is.