entitled to Canadian citizenship because one of their parents lived in Canada
Residence has no bearing on citizenship of children born abroad according to the new rules.
The new rules that come into effect on April 17th are very clear on this point. If a child is born abroad to a Canadian parent that was also born abroad (regardless of the amount of time that parent subsequently spends in Canada), they will not receive Canadian Citizenship.
Living in Canada after being born abroad will have no effect on the citizenship of you children. This is what is so upsetting about the new rules. They are intended to stop citizenship from being passed on to individuals that have neither connection nor ties to Canada. However, they fail to recognize individuals with deep and meaningful connections.
My children for example, were both born in Japan. According to CIC (and yes, I have checked with them directly) if they have children while abroad (and their partner is either 1st gen born abroad or non Canadian) they will not be able to pass on citizenship.
This forum is filled with people in the same boat. I am so surprised that administration of a forum dedicated to Canadians traveling and living abroad is not up on this.