He actually had (If I remember from the history channel correctly) a whole heirarchy of hair/eye/height/head shape combinations that dictated how aryan you were.
If you want proof heres a
link from the US holocaust museam, a pretty reputable source.
As for why he would do this, given he was short and dark haired, I always wondered as well. i think part of the reason was that his ideal of the aryan master race was a future ideal, something that could only happen once the Germans controled everything.
It does testify to his power as a demagouge that he could say "people who look like me are inferior and should not be listened to" and everyone would say "yes, heil hitler!". But keep in mind that this is not a totally alien phenomena in our age. Feminists continued to rally around Clinton after he took advantage of a position of power to seduce a younger women, and conservatives continue to deify Rush Limbaugh despite his drug addiction (notice how I picked one from each side of the ideological spectrum so I don't get flamed)
.