Thank you, sir: we were *just* talking about not only games and rhetoric/ideology last week but several Molle Industria games in particular in my Persuasive Media class. I'm posting a quick entry on our class blog (http://acpm12.wordpress.com/).
Objectification of the other is not exclusive to fascism, by any means. Many other 'isms' do it - colonialism being a fine exemplar. But it is true that states use this consistently to mobilize their populations.
Interesting argument re: dehumanization. The examples he picks involve voiced, named characters, rather than anonymous hordes.
This is another fine teachable issue.