You have to imagine they had more conversations than what was shown on screen. They had seen how big of a heart he had and how much he meant to Emma. I think it makes complete sense that they wanted to honor him by naming their son for him. Their baby was saved because of Neal’s actions. The series isn’t likely going to take us all the way into the future to when Henry has a son anyway. I think Emma was touched. I actually think Rumple was a bit too even though he may not admit it.
Actually no. If these big heart wrenching conversations are happening, they need to happen ON SCREEN. Stuff like that shouldn’t be put to the side of audience members to try and piece together in order to make a story work. You can’t just go “oh well this happened off screen so it’s totally fine” because you have no idea if it really did or not. If there was a discussion then it needed to be shown, not just fan imagined in order for things to make sense. That’s the hallmark of bad writing.