Milo acts to shore up fascist and radical right-wing sentiment under the guise of "turning free speech back on the intolerant left, who are the real bigots!" He plays a character that is increasingly ridiculous and flamboyant, using that as justification for "jokes" that are meant to be taken seriously by his real target audience. His "Dangerous Faggot" title and status as a gay man is directly parallel to, say, a collaborating Jewish clown in a German kabarett in WII. Whose act involves mocking himself and celebrating the Nazi image of Jewish depravities.
Regardless of whether he calls himself a Neo Nazi, he is the clownish mascot of young contemporary racists, misogynists, and yes Literal Nazis. They are essentially using him as an excuse to have events and parties on campuses by inviting him, using the fear of being labeled "intolerant" against universities. And of course, meet the inevitable protests with accusations of Intolerance of Mah Intolerance by the Hypocritical Leftists.
But as has been stated many times recently, fascists and authoritarians will whine and whine about their freedom of speech being violated by not giving them a platform, right up until the moment they remove the same freedom from everyone but themselves.