Lets put it in simple words. In your case as you are naturalized citizen your children will be canadian even if they are born outside canada. But once your children grow up because they obtained citizenship by descent through u there children will only be canadian if they are born in canada. They will not be able to pass it on if their children are born outside, they will have to go for PR route for those children. (Ps. This is per current laws who knows what the laws will be by the time ur children grow up)
hope that helps