>Is it really overblown? Think about it.
The problem is people in the west can only "think about it" in western lens which leads to readily accessible Godwin's Law. Chinese mental schema is not preoccupied with Hitler, most Chinese aren't familiar with Nazi death camps and the ones that are, don't attribute any particular significance to them because China is a 5000 year old country with a long legacy of extermination but also integration (i.e. manchu, mongol rulers got subsumed into broader Chinese culture).
Anyway, these are "vocational training camps" because ostensibly that's their goal - forced integration into society not elimination. Yes many people died under disastrous CPC policies, but in terms of genocide and extermination, the victims of CPC purges are constrained and not ethnically targeted. Compared to say FaLunGong pratitionres. CPC isn't aiming to eliminate and entire Chinese minority, 1 one of 55 officially recognized by the constitution, if only because they have to change the constitution to 54 after to reflect it and that would look bad for Xi domestically.
To contextualize what's happening in Xinjiang, it's useful to think of US melting pot analogy combined with brutal indigenous residential schools that are conceptually based around integration. Because that is literally the inspiration behind it. Yes, awkward golf clap for US inspiring Nazi and Chinese concentration camps.
Here's a brief write up of the politics behind the scene:
China is unofficially moving towards a 2nd generation MingZu (minority/ethnic) policy. The original ethnic policy was based around Soviet oblasts, autonomous regions with extra freedoms, i.e. tax break, family planning exceptions, affirmative action. These perks designed to ingratiate ethnic minorities to Chinese rule have not maintained serenity, post 2009 violent uprisings in Tibet and XinJiang which has led some thinkers to believe that ethnic autonomy and local identity has backfired. One of the extreme but prominent thinker was important at United Work. Forgot whom. Supposedly Xi pushed back on the idea initially. But the ground campaign happening now speaks for itself despite no official policy shift or changes in article 4 of the constitution (minority rights).
The new MingZu policy emphasized national unity, instead of local identity. The new focus is on GuoZu (State race), abandon individual identity to one national identity. HanYu (Han language) / PuTongHua (common language) has been renamed to GuoYu (national language) in official documentation. In response to Uyghur intellectuals / upper class teaching Uyghur languages to their kids, promotion of ethnic languages has (supposedly) been internally elevated to great evil status after extremist, separatism, terrorism. Increasing Han migration to autonomous regions to promote ethnic mingling. New restrictions on religion that will likely touch all religions.
Ironically, the proponents drew inspiration from US melting pot analogy that aims to treat everyone equally and eventual integration. Contrasting to the current 'salad bowl' approach - citing the division seen in extreme multiculturalism (European Islamic enclaves I think) as a point of failure. There's a lot going on: equalizing - read: repressing - legally "privileged" minorities back to equality status of the average Han without acknowledging other structural privileges of being Han in a Han dominated culture. Something, something, intersectionality.
Edit: As always, I have to clarify that I do not endorse what is happening in XinJiang. I think CPC is capable of doing better without committing mistakes the west already learned. My prediction is something like the cultural revolution / cultural genocide that will last years and a few generations from now if the situation stabilizes the CPC will express some remorse and platitudes for past mistakes under different leadership (sounds familiar as a Canadian). The difference is XinJiang will be better off compared to the prognosis in the west because China has the infrastructure capability to uplift XinJiang living standards. Contrast to the shithole reserves without plumbing and dependent on water boiling in Canada.
My biggest concern is that the CPC will probably pull it off, and the model for rapid integration will be exported around the world. Why do you think authoritarian muslim countries support China? The western narrative is Chinese $$$, but I think rulers of these countries are waiting on the sidelines trying (and secretly hoping) that the XinJiang experiment will work - you can easily swap out desecularizing with secularizing. Also see how sentiment towards muslim immigrants are shifting in Europe to see another possible future application. It wouldn't be the same of course, but vocation training center with European characteristics is more than plausible to me.
Edit2: To add, one of the fundamental characteristics about Chinese growth/rejuvenation whatever is doing big things fast. Integration is something that takes generations to cultivate, but of course China going to try to rush it. It worked in industrial widgets, it worked in academic papers, it's crazy to think it will work on hearts and mind, but who knows, maybe it will. Xi himself is a product of work camps. He's a believer.