In my humble opinion, people generally take this kind of thing over the top. The pictures shown of Diana, from what I can gleam from the information provided, were not graphic in any way. There are dying people shown on TV every day. She was human, and deserves no more or less respect than any other individual. In fact it is one of the only two things we can be sure of in life... death and taxes.
As for the pictures of the coffins, again, it conveys a message. Yes, quite powerful, I agree Simon.
All in all, these are people we care about. Those people laying in the coffins, and also Lady Diana. Showing their last moments or their neatly arranged coffins brings the idea of death just a little closer to our hearts, and in a way, shows us that eventually it will happen to us all, so why fear it?
Hmm... just my opinion.
FMZ