While I see your point, and I would agree, under normal circumstances you'd probably want to stick with a player who is no longer active... Especially as technically there's a risk, if he becomes a coach, that he could end up coaching a rival A-league team.
On the other hand, he is the last player that we have, from the inaugural squad. No matter what anyone else does in the future, it cannot change that Hutch has been an integral part of the formation of our team and of building that culture. I think the only other person that could argue that sort of influence, would be Lawrie and he's never played for us, so would be an odd choice for the medal, I think.
To some extend, Hutch has been one of the cornerstones on which the club was built and he's never shied away from that responsibility. Most definitely not the best player we've ever had, he could have been forgiven, several times, for going elsewhere or just not really engaging in the club. But more than anyones, except perhaps Matty Simon, he bleeds blue and yellow and represents many of the qualities that we look for in a player... If you note, while he has had plenty of detractors, the one thing that is always brought up is his commitment to the club.
As such, I think it makes sense to sort of elevate him as something for the other players to strive to and so, it makes sense to rename the medal in his honor I think.
Please forgive the drama of the writing though, but it seemed the best way to describe why I think it's a good idea