I think so because it is obviously invoking the Nazi policy concept. Absent that it sounds startlingly unnatural to me. Even in lowercase it looks odd in an English sentence. Interesting discussion. Thanks for it!

Oxford capitalizes, Webster doesn't. So opinions differ on that! It does seem to be less well established in the English lexicon than "schadenfreude" which appears to be lower case, nearly all the time (though I'm sure some sticklers still capitalize it!)