Leni Riefenstahl must be rolling over in her grave (h/t to Charles for that reference). The music is a laugh, and check out Jaba the General walking on Khamenei's right. I'll give those Iranian soldiers this, though: It takes a special kind of man to show up to a military parade wearing yellow booties and powder blue camo and not feel self-conscious. I guess that's why they goose-step...keeps the panties from riding up (or maybe helps 'em!).
It's a show put on for outside consumption. I doubt that the Swastika has any particularly ominous meaning for the average Iranian onlooker.