Only one previous Leader of the Opposition has died while in office, and it was Wilfrid Laurier. As a former Prime Minister, he would have qualified for a State Funeral anyway.
I've never been big on pomp and circumstance, but I think the Opposition Leader's role in government is probably on par with the bigger Cabinet positions, so I don't really have a problem with him being given a State funeral.
From a cynical political POV, it's harder to criticize Harper for giving Layton a State Funeral than it would be to criticize him for not giving the State Funeral.
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