Are you saying leaving an inactive member's name there as a moderator is a kind of compensation for him from owners of this forum? I do not think that is the case. What you just said now can be done in a proper manner if at all by getting those who have helped this forum one way or the other into a Hall of Fame for this forum. Just open a thread and pack them all in there by mentioning and branding them.
Somehow but its a different case from other hall of famers since he is a moderator and not a popular user whom really have some contributions here. Anyway its just my opinion right? Why bother with such name being pop up there plus this isnt a big deal. Those moderators are probably handpicked and its special here since they have such task to do here aside from posting. Just my 2 cent.