Yeah, a key thing here is that the N word originated as a slur. "Yid" was appropriated into being one, from being a common term used among Jewish communities into the late 20th century. "Yid" was, and really should be, value-neutral like, for example, "Irish".
(FYI I am technically Irish. Got the passport. You know.)
I've heard "Irish" used as a slur, as well as more often not. (In a parallel universe: "Spurs fans are all Irish!" "Yes, we are. And?"*) Of course that's not quite equivalent, since the respectful use of "Yid" was historically almost always within the Jewish community. Regardless, at some point "Yid" was lost as a positive or neutral term in everyday use.
"Reclaiming" the Y word is closer to reclaiming "Irish" than to doing the same for the N word, but not by a lot.
However, the fact that the Y word is (almost) only a slur today - and the Yid Army idea explicitly derives from that usage - is what makes it for limited use only, as someone described further up.
* And then the Chelsea fans imitate potatoes or something. I haven't thought this through.