Walker and Herbert, the name of George W. Bush's father, George Herbert Walker Bush, are names of ancestors. The names can be traced back to both maternal and paternal ancestors in America. I don't see anything funny or odd about honoring family when naming children.

Barack Hussein Obama II is named after his African father, who was a Kenyan native and, at the time of Obama's birth, his father was a citizen of the United Kingdom and Colonies. (Kenya formally gained its independence from the United Kingdom two years after Obama's birth.)

Hussein Onyango Obama was Obama's grandfather.

Like the Bush family, Obama's parents carried on a tradition of honoring relatives by giving children their names. I don't see why it is seen as offensive when someone uses a middle name. Especially when it shows a sort of family tree and geneology.