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Well, yes and no. That's nice you pointed out the religious motive (as the part of propaganda was the popularization of "german" mythology), however the main motive was nationalism which found a great ground in decadent atmosphere and the mood of failure which was eating german and austrian people a lot. The hatred against Jews started much earlier.

King Philip of Spain declared war on England because he believed that they were enemies of god for renouncing Catholicism.

And why did the "nation" have to exlude jews? Because of religion.

It depends on which side of that "conflict" we're talking about. However I think it was a war against Jews as the nation, not the jewish religion itself. Germans wanted to destroy Jews for more reasons, mostly cultural and ideological, don't forget they were an important part of their society, very wealthy and respected, but to some movements (those that inspired Hitler most and helped anti-jewish propaganda in past) they were like parasites which have to be executed in order to purify their society and/or race, but it was an absurd way of purifying because many german and austrian families were completely mixed up with Jews, and as a result of that, I, for example, am aware of my possible jewish blood, as part of my family comes from Austria. Also many Jews that weren't orthodox and came from respected families survived the war quite well. It was more complicated, and as always it depended on connections and such stuff. Religion itself could be completely different, it was just an excuse. One of many foolish excuses for holocaust.