Peter: "Why do we assume that more advance species are using technology which we do?"
Let's put it this way. The alien Nazis are humans and they are a terrestrial civilization that broke away in a remote past more than 3,000 years ago.
Our current human civilization (USA, Russia, China, Germany, Japan, Brazil) do not have such advance technology to manipulate us, they may be able to manipulate a few individuals using drugs and hypnosis. Otherwise they use the media to manipulated our opinion. Additionally, they may secret networks, secret weapons and secret aircraft, and that's it, but nothing like the matrix mentioned by Princess.