No, I believe it means that the monument with the barbed wire present portrayed more accurately what had been inflicted upon the Jews.
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red apple, but they should have even enclosed the whole city in barbed wire"?The writer is being hypothetical.
red appleAnd "while they were at it" in the original text refers to the Jews, doesn't it?No, "they" refers to the hard-pressed municipality who ordered the barbed wire to be placed around the sculpture.