[H]ow do you explain parallels between the writings of Paul and Tacitus? Did some clever 2nd-century writer notice the Christ/Chrest confusion and exploit it in his construction of a false Pauline narrative? William of Ockham is rolling over in his grave.
Paul worshiped a god whose name was only ever given as abbreviated ΧΣ. (see
Second-god (Christ) §. Paul's "Christ" or "Chrestus")
(1) Suetonius mentions Christians as persecuted by Nero but does not know of any connection between that and the fire at Rome. This may be an interpolated line, but the evidence to confirm that is too weak to be confident.
(2) Suetonius separately mentions riots in Rome instigated by a certain Jewish leader named Chrestus under Claudius (not Nero) in the 50s A.D. Many have attempted to connect this to Christianity somehow but there is no credible reason to.
(3) Tacitus’s text as we have it speaks clearly of a Christ executed by Pilate under Tiberius who inspired the “Chrestians” which a later copyist “fixed” into “Christians” (the e was erased and replaced with an i), who were blamed for the fire at Rome under Nero.
(4) This text might be authentic up to the Chrestians being blamed, but yet have one interpolated line linking the Chrestians to Christ. In a peer reviewed journal (which article is what is reproduced in
Hitler Homer) I presented abundant evidence that this indeed is what happened. No one knew of any connection between the fire at Rome and Nero’s persecution of Christians until we start seeing it reflected in legendary and forged material in the 4th century, despite many prior authors, including Christian authors, knowing the text of Tacitus and writing about the persecution of Christians under Nero, which is just one of many evidences that’s very improbable unless Tacutus’s text about Chrestians never connected them to Christ (until the text was “fixed” to say that sometime in the 4th century).
Once you sort all that out, the issue is not that no one knew of a legendary persecution of Christians under Nero until the 4th century; rather, no one had any idea it had any connection to the fire at Rome, the unique contribution of the text of Tacitus. So there is no difficulty explaining the demonization of Nero in Revelation. Even if we were to assume that was due to his persecuting Christians; but as we know Christians often fabricated or exaggerated their claims of persecution (see Moss,
The Myth of Persecution), even that might not have been meaningfully true but just believed by the end of the first century (in the same way later legends grew of Domitian persecuting Christians, out of reports that originally said those he persecuted were Jews, with no connection to Christianity).