That's good to know, but what do you think about my other entries for "Current country of residence" as far as Status ( "Other" ) and explanation what this "Other" means? Should I attach extra sheet with more details about status ( actually out of status) in US or they do not care as long there are no violations from Canada point of view?
You did correctly for those entries. An extra sheet to provide some details about your wife's status in US is always a plus. Focus on gaining sympathy from the people who will review your case. You should really focus on providing a very strong case to convince CIC that your wife married you is not a desperate move and your marriage is not a marriage for convenience for her. You have kid(s) together is a plus, but from some cases I read, it is not a decisive factor. Pick your 20 photos wisely to paint a love story, asking friends and families to write letters to support you. Find out if your wife has any outstanding warrants or deportation orders, if she has, list them on a separate sheet. Don't try to lie or omit anything like that, because Canada and US shares immigration records of anyone that is not a green card holder or citizen. Try your best to convince the officers that your marriage is real, thus to waive a very possible interview.
Anyway, good luck, and try your best, but prepare for the worst.