Funerals really are not for the benefit of the deceased, but rather for those still living who experienced the painful loss of the deceased. Because of this, it doesn't bother me when the departed are made to look better or more saintly than they were in real life. It comforts family and friends, and provides closure.
The Tony Danza thing is something else, though. If the priest lost sight of what he was there for, he should have been set straight.