The whole point of middle names is that it doesn't matter if they are awful.
Your middle name is almost a secret.
It's an easy way to name a child after someone important without calling them the same name.
It's pretty unreasonable of you to name your first son after your father and then refuse to allow your second child to be named after anyone on your husband's side.
It's not about the niceness of the name, it's about the recognition of the connection.
I had this a bit with DH when I was expecting DD2
"How about Bridget for a middle name?"
"Eugh, I can't stand the name Bridget!"
"Um... I'm suggesting we call her after your mother." :o
We did call her Bridget (a name I like a lot, but I would have given her whatever MIL's name was, and she was really touched. It turned out she had been named after her own mother (who went by another name, but was Christened Bridget).
Just embrace the hickey names - honouring his family is worth a middle name you don't care for.
Nobody uses middle names, it doesn't matter if they are old fashioned and out of favour if they tell a good story.