I think it's an honor personally - but everyone feels differently about these things. It seems like your husband is fairly anti the whole idea which probably is more immediately relevant?
If it were me I would talk to your husband about the honor of that name, the feelings it may bring up for your gran etc etc etc. If he was to agree I would then ask his gran.

My daughter is Lucy Philomena which is the full name of her paternal great grandmother - she died the day I discovered I was pregnant with her. Thus the name. We asked my husbands family who saw it as an honor. I know this is not the same as a still born baby.

Goodluck with it all.