If your child became a PR, and then you applied for citizenship on their behalf, they are a citizen by naturalization. Their citizenship is not 'tainted' like yours, rather, they are more of a 'true' citizen than you are and they will be able to pass on their citizenship (unless the laws change).So: any child who becomes a PR and then becomes a citizen is a citizen by naturalization. Regardless of whether the process is 5(2) ie. because the parent is a citizen (citizen-parent who is citizen by descent).
Sorry if this seems obvious, but I wanted to know if the citizenship fo the child (now PR, applying on basis that parent is citizen) was in any way 'tainted' by the parent being citizen by descent. (It does not have the restriction that citizenship by descent has, in other words)
(Which may sound odd to some, but believe me I was very angry when I discovered my citizenship had been 'tainted' by Harper's change in law.)
Rant all you want, I hear it from my husband who was born abroad but moved back to Canada before he could run. And he could not pass on his citizenship to his children when they were born outside Canada.