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They were in desperate need of an americanization of the party. Hell, even their name "American nazi party" uses the allied slur form of "national socialist".
Although I think a lot of the purpose of the ANP was to be as outrageous as possible, to run directly counter to anything and everything possible, but to say say enough true things to make people think. I'm pretty sure that GLR knew that with that branding, especially right after ww2, that he was never going to go anywhere beyond the political underground, but that what he said would start the burgeoning of a current and rejection of the ww2 narrative.
Basically it goes like this:
>"Why do you like hitler and the nazis"
>"because [insert obviously true thing]"
>"hmmm, that definitely makes me ponder things"
Of course he would have been far more successful if he didn't use natsoc symbolism and didn't openly call his party "the American nazi party", but then the connection becomes far less obvious, and it stops the people that would have listened to him from thinking about Hitler and what he did.
It takes our achilles' heel , that of compassion, which also allows us to build high trust societies, and turns it into a strength, by directing that compassion towards one's own people. As an american, one is inherently proud of the defeat of the british, the rejection of the "old world" for independence. Americans hold lot of national pride, and why not? Look at the history, such an epic tale of conquering the savage indians, creating a beautiful country, a paradise could almost be mistaken for fiction. But that pride can also blind you. You can't see the forest for the trees.
You can feel detached from the old world, european way of doing things, and national socialism of course being an entirely european creation that was not exported (At that point) can feel like something to stay away from.
i also agree with the use of the term nazi, i understand that it was used for agitation purposes and for instant recognition from the american public of what the party was, but of course it left a bad taste in the mouth of people who just fought a war against said nazis, just or not. Rockwell simply brought the term used to describe the national socialists and thought "oh these guys were right, damn, well guess i'll keep the name"
***ZOMG, GUIEZ!!! 5D-CHESS!!!***
GLR was a man who planted a seed that only has started bearing fruit very recently.