I'm all for well-paid educators, but I have no use for the dead weight whose focus is their research and paper-writing. If you want to do pure research, find a lab some where, don't drain the university and college systems. With the many thousands of dollars students pay for their education, they deserve better.
I think you're overlooking the fact that 1) teaching oriented schools usually focus on professors who can teach and who do very little research 2) research oriented schools are necessary for graduate education, which involves levels of complexity and skill beyond the realm of simply being a "good teacher." Some people have proposed separating graduate professors/researchers from undergraduate professors. That is something that could work, but at the same time, I would hope that undergrads would want to learn from accomplished researchers, even if the material is dry. That being said, there are still deadwood types who are bad at both teaching and research, who should have never been tenured in the first place.
Just because he's dead is no reason to lay off work.