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What am I missing? Something about Canadian hunting regulations perhaps?

No, you can have a loaded rifle overnight while hunting in Canada. Their handgun laws are very restrictive though.

They were simply unprepared, and should have had a firearm & flashlight ready while camping in bear country.

The absolute best thing you can get when camping in bear country is a backpacking electric bear fence. Generally, bears are curious animals and sniff around quite a bit. It shocks them on the nose, and off they go.

I'm not a wildlife biologist, but I spend lots of time outside and have seen all of North America's bear species in the wild. All except for polar bears, I've been plenty close to the others- some I could have spit on (literally). We used an electric fence around our tent on a Kodiak Island hunt last fall and had no problems at all. There were TONS of brownies, and we even heard some run off at night after they touched it. Between the bears and driving rain & snow we didn't sleep much, but it was a great trip.

Bear spray is a waste of both money and space in a pack. If possible, make noise while hiking, even if it means talking to yourself- seriously.