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Being literally surrounded by the Third Reich meant their choices were neutrality or actually joining up with Hitler, so they really can't be criticized for choosing neutrality. They can be criticized for their actions during and after the war in helping the Nazi leaders squirrel away the wealth they stole from the Jews, something that was not necessary for a neutral nation to do.
I'd rather rip on Sweden which at least had some possibility of joining the Allies but instead supplied Germany with the high-quality iron ore they absolutely needed to keep their war machine running - the exact same thing they did in WWI. They also supplied Germany with much-needed ball bearings, but at least they sold them to the Allies as well.
It actually was kinda necessary. We were strategically very important as the Gotthardtunnel was the main Link between the Germans and the Italians, the two main Allies. So we had to offer them something that was even more valuable than conquering the Gotthardtunnel. We concluded that the opportunity to turn their "spoils of war" into Money was the one thing that was more valuable to them.
I would also like to break a lance for my Swedish compatriots. The Nazis conquered Norway and Denmark in a few weeks because they were positioned strategically along the trade routes. If Sweden stopped exporting the Iron, it was very obvious, that the Nazis would invade Sweden for the Iron if they ever stopped exporting it.
And: Sweden did cooperate with allied intelligence during the war. So there's that. And before someone comes in: While Switzerland didn't directly cooperate with allied intelligence, we did willfully turn a blind eye to them. Tacit cooperation if you want so.