The weirdest part of the article, for me, is: "Arguing that their son yearned to raise a family, his parents challenged that decision in court. And on Jan. 15, after a four-year legal battle, a Tel Aviv court granted the family's wish and ruled that the sperm could be injected into a woman selected by Cohen's family" It makes it look like the woman doesn't have any choice in the matter.
Personally I think the whole thing is just spectacularly stupid. It's one thing if a woman loses a husband or boyfriend and wants to "pay tribute" to him by bearing his child. I think it's still pretty dumb, and spectacularly unfair to the kid (You're intentionally creating a child who will never get a chance to know his father. Having lost my dad at a youngish age I can tell you that being fatherless is not as fun as it looks in the brochures.) but I can kind of understand it. She had a dream of bearing this guy's children and she wants to see that dream through.
But for a mother and father to search out someone to give them a grandkid? And they're going to do what with it? They do know that their dead son can't raise it, right? Are they planning to? Is the woman planning to (Presumably she's getting compensated for this, and I don't know if the sort of woman who needs money badly enough to have a dead man's baby would have the resources necessary to give the kid a good life.) This seems like a really messy situation.
I don't necessarily think that the law should prevent it, but it's still extremely creepy.