As a member of the Church of Jesus Christ of Latter-day Saints I also find it disrespectful that individual members of the church have continued to collect names of Holocaust Jews when expressly told not to. Those that have continued to do so since 1995 are very misguided and clearly do not understand or take seriously the church leadership's position on the issue.
I take exception, though, to the idea that this is something the Church organization (as in "the Mormons" or "the Latter-day Saints') advocates. It is not, and the 1995 statement they issued still stands. Since submission of names for proxy baptism is voluntary and not carefully monitored (obviously, the church leadership didn't realize that individuals would disregard the statement), unless brought to their attention, they would not know that the names were those of Holocaust Jews. I imagine that church leaders are taking steps to monitor the process more closely since their goal is definitely not to offend.
If anyone is interested in the practice, they can read briefly here http://www.mormon.org/learn/0,8672,1300-1,00.html
As you see, the main purpose is for people to search out their *own* family history and genealogy, not random groups of deceased people. And rules apply here as well (like having permission from the nearest living relative).
To Zaq001, you clearly had a bad experience, and I'm really sorry for that, but I wasn't sure if you have a problem with 12-year-old girls being a part of religious ordinances in general or if specific individuals in your situation caused you to feel creeped out. I've done proxy baptisms myself (btw, any LDS person can do them, but they can be no younger than 12) but my experience was very positive. And I'm sorry that you felt coerced by anyone because there is no place for that in one's religious observance. In my practice of the LDS faith, freedom of choice and agency are paramount. But I'm sure that there are those who don't understand that core doctrine.
In case others wonder about the ordinance itself, it's identical to the baptism LDS and other Christians perform with living people--a person is completely immersed in water while the person doing the baptizing utters a prayer affirming that it is being done in the name of the Father, Son, and Holy Ghost.
And of course, I understand that some people here will think that the practice of proxy baptism is disrespectful no matter what. In the past we've talked about missionaries and proselyting and many people did not agree with that either. But these are things we hold sacred. And I know, however, that the Church wants to carry them out in the most respectful manner possible.