It is certainly not OK. Can't understand why the devs and mods tolerate this guild name. On the other hand, server isn't up and the guild hasn't been formed yet. Still hope they will intervene.
I don't get how any grown-up can approve of that name. Is there a different attitude in the US towards WW II crimes than there is in Europe? Flaming is all right, kids... but "Holocaust" isn't. It's right on the top 10 list of guild names which shouldn't be allowed, together with "Child Porn", "Praise 9/11" et cetera.
You argue the name is not primarily associated with the mass murder of jews? I suggest reading the wikipedia article! (
http://en.wikipedia.org/wiki/Holocaust)