No, the Nazi's did not want the Jewish people to flee to areas outside of their control. They wanted the total destruction of the Jewish people. What Israeli is doing is much closer to the actions of Imperial Japan than Nazi Germany.
The reason a line needs to be drawn is because the term, "genocide," has become a tool of the Western liberal media and justification by unscrupulous policymakers to conduct imperialism. Oh, the Serbs are conducting genocide, lets bomb them up and break up their nation. Oh, Russians are conducting genocide in Ukraine, lets sanction them to the stone age. Genocide is happening in Xinjiang, lets sanction a bunch of Chinese companies. Eroding the definition of terms is one of the primary strategies used by Western liberal media to create false equivalences and distort facts in order to propagate false narratives. The term genocide is used because it evokes in people's minds the horrors of Nazi death camps regardless of what is actually happening. People need to recognize, call out, and remember the hypocrisies spun up by the Western liberal media rather than to fall into their trap.
The Zionists in the US want people to waste their time arguing about whether or not what the Israelis are doing fit the definition of genocide. What needs to happen is that a united front be created to put an immediate stop to the atrocities, and for this moment of hypocrisy to be forever remembered.