Yeah, I hate this assumption because some celebrity died, they somehow became the most humorless people in the world when they were alive.Kurt Cobain loved Weird Al's version and video of the song. There's no doubt he would have been wild about this too! Courtney cashed-in and sold her rights a long time ago. That's probably what she's bitter about. And riding someone else's wave of popularity is something that's not entirely foreign to her.
Yet... I've recounted the story of Elvis, his family, Viva Las Vegas, and a certain Pharmaceutical company several times when it comes to music rights, so there's always the problem of music rights holders going over the heads of the actual family. That IS a problem.