Dual Citizenship for kids -- YES or NO? Pros and Cons?

I’m American, my wife is dual USA/Taiwan. We

difficult to get security clearance in the US for governement work.

I assume that you mean you are going to get the children’s Household Registration, whereby they will be assigned an ID card number, and indeed at the age of 14 can physically obtain an ID card.

If they are coming into Taiwan on a USA passport, then technically they would need an ARC, but I believe if they have Household Registration it won’t matter.

There is a category of Taiwan citizenship which just has the Taiwan passport and no ID card . . . . . . those persons are “overseas Chinese” and technically have no right of abode in the Taiwan area. I assume that this is not what you are talking about . . . . . . . since you and your wife are living here it makes sense for the children to have Household Registration.