To expand on this, it's exactly a thousand little ways that add up. In your day to day business, like an an African American, there is no visible discrimination, but in any case of disagreement one party quickly pulls the you're-from-the-other-tribe card. Goes for both sides. I stood by when a Turkish friend got accused by a German-German to be a sleazy Turk who lives off the state (which he clearly does not), just because he was trying to reach consensus in a conflict. I don't know if I could have stayed calm if it had been me being singled out as a lesser German citizen. In essence, a thousand little and unremarkable experiences do add up, and this is a major reason why the youth would seek refuge in groups that accept them fully but like Neo-Nazi campfire events it's mostly Rattenfaengertum.
I like to think it's all because of missing proper education (not mis-education), which has to start with the parents.