Several points here, Jason.
1) perhaps members should have the right to submit family file names if they represent the only posterity of the deceased - but generally they do not. Just because there is a Mormon within the decendants doesn't make it set well with those that reject the mormonthink. There are many outside the church that just don't know what the names are used for. If they did, many would consider it a mockery/slap in the face to their family dynasty and for what these individuals stood for.
I could see that on the name extraction program to a certain extend sure.
2) People do care. For a church that borders on worshipping their dead
Oh please.
I would think they of all people would be more sympathetic to the various cultures that are sensitive to these issues. Why do you think John D. Lee's family pressed for his ordinance reinstatement even though he was a mass murderer? Legacy and a good name are everything - even if it is purely a facade - in Lee's case. Historically, the church takes the ethnocentric approach toward sensitivity.
3) There was a succesful suit against the church to remove/rescind holocast victims names from the temples ordinances. It does matter
One also might think the world would be grateful for the genealogical gold mine that the LDS Church has established based on this "peculiar" doctrine. Perhaps the trade off is a fair one.