with all due respect, the parents will still be spending money on transit visas, so by the same logic, anyone who lands here whether as a student, businessman, visitor should get US passports from the get go as well.
Problem is that the parents were not born in the US, so they don't get the passport. Their kids are born in the US. Big difference.
I don't see a reason why to change a facility/right that is working perfectly fine. Are we seeing a lot of complaints that H1/F1 visa-holders kids are causing a lot of problems? No. Are they causing a lot to the US treasury by being US citizens? No. I can see the logic for not granting automatic citizenship to kids born to ILLEGAL immigrants/residents... but can't see the same logic for H1/F1/etc LEGAL residents.