Citizenship is granted based on one's parentage. If it's say a residence case and the kid's never even lived here a day and they're off partying in Dubai with their Porsche and 1% lifestyle, no, I have no qualms on stripping them of their citizenship tomorrow. They can be angry at their mom or dad for taking away their undeserved passport.
I do, however, have a heart, and agree that if the child has been in Canada for years and years and is clearly established, they should be able to keep their citizenship. However, on the other hand, what's the point of having warnings on minor's citizenship applications stating consequences could happen to the child if the parent lies on the application if its never enforced?
I disagree with your assessment that a judge is somehow better equipped than a bureaucrat to handle cases. Public servants, despite what people think, are not programmed robots or village idiots. They're highly intelligent people. Look for the news story today about the judge that granted a woman Canadian citizenship on the grounds that she left her son's placenta in Canada and tell me if you think Judges always get it right.