What do you think about naming children after family members?

With my family's background, we do not name children after people who are still alive, and only if they have passed away. But I have also seen other cultures where you do name after people who are still alive, and not people who have passed away, which I find interesting.

My parents chose to use a new first name for all of their children, that either had not been used before in the family, or not for a very long time, and then we all had a middle name after someone who had passed away.

Personally, I like this, because it gives you your own name while still honouring the people before you. So what I would like to know is would you choose to name your child after a family member? Why or why not? And would you use it as a first name or a middle name?