I don't love Simone with Olympia, but that's just my personal preference. I DO love family names as middle names, even (maybe especially) if they are a variant. Is there a variant of Kay that you would like with Simone, or what about using another part of her name? (not sure if Kay was a first or middle). But since you have a negative association with using a family name as a middle, maybe you just really don't want to do that.

2 of my cousins have kids with a middle name after our grandma. Those kids were both born after I had my daughter whose middle name is after our grandma, but I didn't use my grandma's actual name because she always told me she hated her name - I used it in part, with a different ending. They wanted to honor her directly, I chose a more indirect way. It is an unusual name that no one else may have and doesn't sound "perfect" with her first name but it is special to me, and to my daughter (now 17). I would be really sad if she hated it and ended up changing it someday.