No. It's saying that allowing any lower level of the pyramid to exist and pervade allows for further levels to be built up. Whereas if that lower level doesn't exist, it's less likely that other forms of hate will develop and subvert society. It's the frog boiling in the water. It's a cautionary tale to know when the water is heating up and how to stop it.
I agree with your assessment. That is exactly why I stated that the overt message of the Pyramid of Hate is that laughing at funny names leads to genocide, because "allowing any lower levels of the pyramid to exist and pervade allows for further levels to be built up". Not sure what the disagreement is tbh.