A lynch Mob is not always race related, though often conected with racial crimes and the KKK.
Lynchings have not always been about race, true, but the overwhelming majority of lynchings that are evoked by the term (in the US at least) happen to have been perpetrated against blacks in the South because of their race. It would be a stretch to say that the very term "lynch" nowadays doesn't automatically evoke thoughts of the KKK and black guys hanging from trees.
And by the same token, not all Waffen SS killed jews or committed war atrocities. Your logic is very inconsistent. You're basically saying that since some of the Waffen SS killed jews and committed war crimes, the very term Waffen SS is obviously inappropriate, but because only some of the extralegal mob killings of helpless individuals were perpetrated by whites against blacks for racial reasons, that term is perfectly fine for a squad name in this game.
This is an egregious double standard.
I'm not trying to jumpstart a whole PC crusade (another loaded term, I know) against AHII squad names, but for heaven's sake, given the brouhaha over the Waffen SS squad, it just boggles my mind that people apparently don't bat an eye over Lynchmob.
Personally, I think that Lynchmob is an obscene squad name.