To the argument of discussing other members in secret:
I'll just echo JC's counter-argument. It happens. Staff positions are other good examples. There's no way around it. (Something like a blind poll with no discussion would preclude an informed decision.) Others have stressed that these discussions are mostly positive. Any negative comments that surface only serve to bring more light to the issue of whether the member would be suited for HK, not for gossip. If there's any gossiping in there I want it to stop. I try to keep the mod chat from gossiping too even though it's their job to discuss the negative actions of members. There's a big difference.
However, I appreciate Rep's argument. It's a con that needs to be outweighed by pros. This sort of discussion is necessary for mods/admins but they provide a necessary service to the community. HK would have to provide enough benefit to merit this awkward situation.
That brings me to the second argument, that members can choose their own role models.
...people can choose awful role models. What may seem good an admirable to one person isn't necessarily what we as a community value. Each forum community has its own expectations, and HKs let people know what our expectations are.