I can see why you feel weird about using an honor name for someone who’s still young, but I think it’s sweet to have that connection between relatives who will know each other for a while. One of my nieces shares my middle name (not actually in honor of me, more like your situation here) and it’s just a fun link between us.
[name_f][/name_f]I also think it’s unlikely that most people would see [name_f]Nora[/name_f] and [name_f]Eliza[/name_f] and think “they’re both named after [name_f]Elizabeth[/name_f] Eleanor!” Maybe someone will [name_f][/name_f]- possibly grandma who knows both names [name_f][/name_f]- but the vast majority would never make those name connections.
[name_f][/name_f]They’re both really good names!