[quote=Sable]Part of this is the interactive aspect to it. A movie is something you experience, a game is usually something you win, or for which there are victory conditions and points and so on and so forth.[/quote]

Have you ever played To The Moon? The Walking Dead?

Those are not games with things to 'win'. The closest you got is...

To The Moon: Fulfilling a dying mans dream to experience landing on the moon before dying, while repairing his love life.
The Walking Dead: To protect a young girl named Clementine and watch her grow up, see the horrors of survival come out the other side stronger for it, but hopefully still caring and compassionate.

[quote=Sable]It's not the content, it's the fact that the medium is a video game, something you play.[/quote]

A more accurate term would be "Interact".
You Interact with the world, you interact with the environment, you interact with the characters.

You experience it, you make choices. That's the power that Video Games have that Movies and Books don't, interaction.

[quote=Sable]On top of that, it's called a video game. A game. Does the Holocaust sound like a fun game to you? No, and the public would be outraged. Don't act like it's some sort of injustice that the industry's name makes it sound trivial.[/quote]

And this is exactly the "Not respected as an art form" thing I was referring to. You're choosing to downplay it as a game, rather than see it as an art form. 
As a result you are getting offended by the topic being in a Video Game, rather than being able to enjoy it like a movie based on the same topic.

For example, let's look at TV Shows. Keyword: Show.

Does the Holocaust sound like a fun show to you? No, and the public would be outraged. Don't act like it's some sort of injustice that the industry's name makes it sound trivial.