I wouldn't do it, although with my confirmation name we had to choose a saint. I chose St Margaret of Scotland, thereby my other chosen name is Margaret because my Gradmother, Mother (real) and Aunty are all Margaret's.
yes both my children were named after their grandparents and great grandparents. Both first and middle names! We just so happened to like the names! Not sure what we will do if we have a third, there are no nice names left :)