In this excerpt, it is clear that the speaker wants to go away to a peaceful cabin in Innisfree. We know that he wants to get away from materialism because his possessions in the dream are extremely austere. For example, his cabin is made out of clay and wattles. Moreover, we know that he wants to get away from the turmoil because he talks about the peace that he will have in this setting.
What I think he means is that the bystanders knew what was happening but didn't stand up for it. They didn't fight for the Jews rights. But in my opinion that statement is wrong since anyone who stood up or defended the Jews would be killed.