One good way to answer your question is to ask the exact opposite question: why wouldn't they deserve decent funeral?
How would it help anyone to refuse decent funerals to a dead body? No matter their crime, the 'real bad guy' is now dead and is no more. It's a body not a person anymore.
And then, one may want to consider this question: why would anyone want to punish innocent people (the family of the 'real bad guy' has committed no crime, right?) by refusing them the right to pay respect to the deceased? And if it is somehow right to punish the family for crimes they have not committed, have they been (secretly and silently) trialed? By whom and for what crime exactly? And who was their defendant?
One may also want to question their desire to hate so much on a person as to hate their corpse and then, once again, to apply their hate onto innocent people, aka the family of the 'real bad guy'.
Thx a lot. I did not about this movie. What I've watched so far sure makes it a compelling one to watch.