I think Latuff did contemplate the moral implications of his cartoons, but he found nothing wrong with them because nowhere in his cartoons does he equate the Occupation of Palestine with the Holocaust. He also doesn't equate the Occupation with the Holocaust of the North American Indians or South African Apartheid. All his cartoons in that series are depicting scenes of oppression and in each panel the victim is exclaiming "I am Palestinian", to point to the fact that today's Palestinians are oppressed. It's a call for international solidarity with all victims of oppression past and current. Latuff's message is diametrically opposed to all forms of racism and anti-semitism. Latuff has said so in all his statements relating to the incident.
Latuff has struck a nerve and that nerve is the strategy of denouncing all reasonable criticism of the Israeli military presence in Palestine as anti-semitic.
That strategy works especially well in Germany, but also in other German speaking countries like Switzerland and Austria. IMC Germany habitually censors Latuff cartoons about the Israel/Palestine conflict.
I really don't know how the Urbana-Champaign IMC could possibly know whether or not the intentions of AKdH are genuine or not. They could be, if AKdH had looked at only one of the panels of the series. But having seen the whole series and then picking out the last panel as advocating "the extermination of the Jewish people and the State of Israel" can't be a genuine cri de couer. Ridiculous claims like that look more like an attempt to smear and discredit the grievances of the Palestinian people.
To call Latuff's cartoons insignificant sounds a bit insulting.