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I think it's fine providing they don't spell out something stupid or offensive! Your options are great! My DH's initials spell out ASH and it's been super handy throughout his life for various things.
Friends of our have a hyphinated surname which is S-S and the middle name they had selected for their bubs started with R so thankfully one of their other friends pointed out that they should steer clear of 'A' names for the first name... ARSS. Yeah, not good!
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What the initials spelled (if anything) did come into our thinking when selecting names. My DH has two middle names only because without it his initials would have been a swear word (AR$ became ARJS).
I have two middle names for family tradition reasons so our children have 2 middle names to follow both of us but following my family tradition (and not his LOL).