I think they should hold the real funeral at their church with their friends family and supporters. Michael now "owns her" He can keep her remains from her parents and family forever, and the Schindlers need not let that keep them from grieving for Terri as they would have if Michael had been decent and compassionate and sharing. They should have a ceremony, and perhaps have a plaque made to honor her and keep in their own garden. Michael can't take that away. he can't take their dignity or their love for their daughter away.
Michael will never regain his reputation, or honor. He will have her cremated and send her ashes hundreds of miles away. I hope he sees her face every time he closes his eyes for the rest of his life.