Poagao, mixed feelings are only natural in a situation like this. Perhaps you too have experienced similar feelings of anger and frustration at some point, just as I do. It helps to think of citizenship issues less in terms of sentiment (scorned love, perhaps?) than in terms of practicalities.
The biggest victims of injustice are not going to be people like me, but the hundreds of thousands of not-so-"super" foreigners (in the eyes of Taiwan's government), mostly SE Asians, whose rights and livelihoods are far less secure than mine. Closer to my societal category, Jenna Cody wrote an essay on her Laorencha blog a few months ago about what it felt like to be effectively told she was not wanted or valued enough to be allowed (dual) citizenship. So the "super-foreigner" category has the effect of dividing us against each other. (In the future I suspect it will be used mainly to attract athletes.)
The government's objection is not so much about all these people living here--we're already here--but on too many of us having rights. Think about what this means for the direction of Taiwan society, and whether it will ever evolve to the level where we don't have to read stories about honest-to-god slaves being discovered on a fishing boat, or wherever.