Hmmm, I'd like to weigh in on this:
For one, I think it's an excellent idea, but there's a few things that haven't been mentioned that should have been:
Funeral pyre's would be a combination of a workshop and a corpse stockpile. Requires 3 wood to build, you can pile up to say, 20 corpses onto it, and then the pyre itself is set on fire and the actual structure is burned to the ground. You wouldn't be able to put dwarves into a pyre, but instead pretty much everything that attacks you.
I don't know about anyone else but I'm pretty bored at having to butcher forgotten beasts, I'd much rather mount the thing on a funeral pyre and when you set it alight, dwarves come out and treat it like a party essentially.
This would also provide great material for engravers et al, Engraved on the wall is an exceptionally designed image of Urist McHauler the dwarf and Zon McMason the dwarf by Fath McEngraver. Urist McHauler is telling a story, Zon McMason is laughing. The artwork relates to the celebration of the killing of Goblin McNolegs by the Axedwarf Tum McAxedwarf in Awesomefort in the early winter of 312 during The Attempted Abduction at Awesomefort. The story relates to severing of the left upper leg of Goblin McNolegs by the Axedwarf Tum McAxedwarf with a steel battleaxe in the early winter of 312 during The Attempted Abduction at Awesomefort.
Crematorium, this is closer to what Girlinhat originally suggested, a workshop that takes in one corpse and one coal, rather than wood, and cremates the corpse, the ashes are then put into an urn, which functions as a coffin or engraved slab.
I'd also love for dwarves to take time off from their jobs to visit the graves/slabs/urns of their loved ones, and if a gravesite is neglected for long enough, for an angry dwarf to come and start haunting their lazy son for not visiting often enough.