I doubt problems are "huge". You know, most of problems delivered by having offensive (to some) content is that:
1) people will talk about it = read: free promotion.
2) labels who may worry about negative feedback, will not sell it = read: those who do, sell few more.
Those are the basic things. Then when profile goes up, it may lead to cutting off opportunities to play gigs in certain venues. Some alternative left wing places may be horrified when someone complains why they host show for the nazis, and they'll immediately cancel it.
I have gotten few returned discs. Refusals from labels to distribute certain titles. Cancelled live shows. Protest from customers and some labels over releases. Insults from people all over. It's not really a problem, it's what I call communication. People telling what they think over release that I made.
But as far as I can sense the wibe, most of these white consciousness related projects aren't very welcomed by several others who are very sensitive where they want to be associated. Due circumstances of negative attention having bad consequences, they need to keep distance. Thinking of situation of UK gig organiser who did Der Blutharsh, DIJ and others (including Grunt) and I believe pretty confusing story included pictures including wearing humorous swastika armband, names of these famous "nazi bands" she organizes etc were distributed in form of letter in her living area (predominantly black) and contacts to her work, contacts taken to venues and shops selling tickets etc. Think situation like this, and probably many shops of high profile labels who have wild imagination, might want to stay away from trouble. Trouble that can be caused simply by 1 guy. To me personally, if album sells 500 and is praised by almost everybody who gets it, vs. couple dozen who gets upset, and perhaps 1-5 who might do something about it, seems like pretty good indication which is the thing for example label should listen to. Of course this will marginalize label somewhere very far from possibilities what less offensive new wave of...... -approach could bring.
Anyways, as said before, I'm very sure that with track lengths of 4-5 minutes, with good 8-10 bands, LP would be good. I think what would be needed is inviting all, and rejecting the crap. The policy what makes people really pissed off, but is necessary when doing good compilation. Weak links simply must be rejected, even if they come from a friend. Perhaps that's why comp. should be done by someone outsider, who isn't friend.
