In “The Ultimate Computer”, the duotronic M-5 computer was deemed a failure which sent its creator Richard Daystrom into a nervous breakdown. Not only did Daystrom experience psychological distress (probably the most polite way to describe it), but was responsible for a machine that killed upwards of 53 people.
Why would a person responsible for the invention of a computer that unintentionally killed (unintentionally as in, not ordered to do so) get their name enshrined? Is there anything to explain why such a troubled person that ended up killing others in a quest to eliminate the risk of human death, would inspire anyone to name an organization after them?
EDIT: I need to add some complicating facts to this. “Chose Your Pain” (DIS season 1 episode 5) gives Daystrom Institute a founding date of 2256, which is before TOS. So based on comments, likely the duotronic computer is why the name was picked.
Plus the fault with the multitronic computer wasn’t really the multitronic mechanism that operated it. It was that Daystrom stuffed his neural engrams into it to try and make it sapient, which caused everything to go wrong, probably because it was loaded with everything in his head, including his desperation to make the multitronic computer work, and paranoia about his peers. A multitronic unit loaded with LCARS might not be that revolutionary, but would not have gone homicidal.
Though we never saw it get advanced into a whole computer system on its own, they did seem to get used for some things that needed mind-like complexity. Holograms use multitronics as part of the matrix, for example. So Daystrom might have been onto something, but was too obsessed in creating something that could supersede duotronics to properly explore the thing.