If I'm dead and doing something like that would make my parents and some nice lady feel better, why not?
Really, after death, what's the big deal? If someone has some religious or other moral taboo against something like this, then that's fine, dispose of their body however they wanted. But in the absence of some sort of indication about that, why not give the parents a chance to have a genetic grandson?
I don't think the surviving parents ought to have many rights concerning the baby, but family survival is a very strong instinctive desire so this one seems like a fairly reasonable concession to "privacy" laws.
Of course, I also think that things like copyrights should expire on death too, but that's because I'm not a lawyer or someone trying to sponge off of a family member's creativity either. I just don't think that consideration for dead people's rights should over-ride concern for those still living.