Alternatively, a small badge (perhaps an infinity symbol or Hex63 of the I Ching ("After Completion") to indicate the person has passed on, plus disabling further personal messages on the account and deleting any other contact information would be the easiest and best thing to do? That way anybody who was curious about the person after reading their posts would learn he or she is no longer with us.
Actually, my first thought was that some sort of indication should be made on their profile; thanks for thinking alike, 40Hz
...and great ideas too.
I know there are online spaces where you can store your logins and passwords and a few pre-written emails to be released on notification of your passing, so I'm thinking something along the lines of a "final post" stored in profile-space that's only unlocked when the "time comes" might be a good idea, but may not be practical with the forum software.
A memorial section in the forum would not be out of line.
Only thing I've ever seen done is along the lines of what OP has already accomplished. I'm not really sure a dedicated Obit section is really needed. It's too much the constant reminder, and a bit dark (as in tends to dampen mood).
Ah, differences of opinion... I did ask for thoughts after all.
After thinking about it a bit, I'm kinda shying away from the idea of a dedicated memorial section as I agree it might creep some people out, but then again in certain cultures, funerals can be quite the party, as it's a celebration of the departed moving on to a better place, and a reminder to the living to do what little livin' they may have left.
So, my vote goes with a wisely-worded mention here in Living Room, with some indication in their profile of their passing and a link to the relevant post. May be especially nice if immediate family/friends could be passed the link as well.
P.S. I just had a thought: Some folks just might be thinking, "Well, maybe this is really too much to get worked up about. This IS just a software forum, for cryin' out loud, people come and go all the time." Well... yes... sorta, but for those that have been around here for long enough, it becomes obvious that under the surface, it's a little more than "just a software forum". Many of us here have come to know each other almost like extended family, or intimate pen-pals at the very least, and the passing of one of our own can carry the same weight of pain and sadness that the death of a close friend or relative can. So to honor the memory of their contributions to the life of this site and the relationships we all forged together is entirely appropriate and worth a little effort, if only to aid the process of grieving and closure. Personally, I'd like that.