Nietzsche on Buddhism

Nietzsche repeatedly refers to Buddhism as a decadent and nihilistic religion. It seems to be a textbook case of just what Nietzsche is out to remedy in human thinking. It devalues the world as illusory and merely apparent, instead looking to an underlying reality for value and meaning. Its stated goals seem to be negative and escapist, Nietzsche sometimes seems to praise certain aspects of Buddhist teaching—and some of his own core ideas bear a resemblance to Buddhist doctrine. What exactly is Nietzsche’s evaluation of Buddhism? Is it merely unmitigated nihilism, or is there positive value to be found in Buddhism? There is also good reason to believe that Nietzsche’s knowledge of Buddhism was inaccurate and incomplete, if only due to his historic situation in 19th century Europe. Given current greater Western understanding of Buddhism, would Nietzsche still label Buddhism as life-denying and nihilistic?
Nietzsche most often addresses Buddhism as a rhetorical foil for Christianity, rather than analysing it directly.
Nietzsche exaggerates any aspects he approves in Buddhism as part of his rhetorical strategy. Buddhism is not moral, it is hygienic, prescribing a cure for the horror of the world rather than covering it up in dishonest grammar. In his highest praise of Buddhism, Nietzsche admits that it has dropped the slave morality—and the self-deception that accompanies it. Nietzsche describes Buddhism as clouded by morality. Perhaps specifically defining a thing as beyond good and evil keeps it trapped in the paradigm of defining the valuable by the valueless.
But Nietzsche only speaks favourably of Buddhism by comparison: when he mentions Buddhism apart from Christianity, it is all described as nihilism and desire for nothingness.
An Indian Nietzsche could easily have given Buddhism pride of place in the hierarchy of dangerous, life-denying institutions to discredit. Buddhism has perfected nihilism, but this is not a perfection to be desired.
But while