Tbh, the idea of it is stupid. Why would I want to see a hologram of Pac? I was born in 91, so obviously I didn't get to see Pac perform, but that has never ever stopped me from enjoying his music. I'm content with what he's left behind.
Is it insensitive? Yes, it ignores the idea of death, which is inevitable for every single person in this world, which is disrespectful, because once a person has died, their presence is absent and the only thing that is left of them on this world is their legacy and it's content.
By creating a hologram, it totally ignores the reality of the situation and paints a faux image for fans for the sake of entertainment, although entertainment is important as that's why Pac is who he is, but respect him as a human before you use him as entertainment.