NBC would not let the crew take a break for the funeral so only Cliffy went? What bull *beep*
I researched this because while watching the series from he beginning recently, I was shocked at how they just swept him under the rug. "oh yeah, he died months ago." With no emotion or send off. The episode was more about Woody showing up and more Sam/Diane crap.
It was handled appropriately. What many of you may not realize was that the the night after Nick Colassanto passed away, they reran the "Coach's Daughter" episode in tribute to him. The episode began with a black-and-white photo of Coach and a moment of silence, followed by Ted Danson saying "Tonight's special encore episode of Cheers is dedicated to the memory of Nicholas Colassanto". My words don't do it justice - it was beautifully done.
Can't say as though I would have liked an episode dedicated to him. Cheers was a comedy and having everyone sit around solemnly telling stories of him or moping around would be too depressing. I think News Radio did something like that after Hartman died. I don't remember the episode in detail, just they did that sort of style and it was sad to watch. I don't think people want to come away feeling worse after watching an episode. I think they did it right by having the next episode be set a few months later and having the characters mourn off screen and then passively working Coach into the conversation here and there in following years to show he was still missed but not beating the viewer over the head with it.