It's not the fact of whether he was a good basketball person or not. It's the fact that he was a good person, period. He was a team leader and a community leader as well.
Just because he died in a reckless way doesn't mean that his jersey doesn't deserve to be retired.
The fact is that the players, citizens of Charlotte, and the management of the Hornets all loved the guy. That's why his jersey is being retired.