Still children of God. Doesn't mean you can't kill them, of course. :)
Some Canaanites switched sides and were accepted as Jews, even winding up in the ancestry of David and Jesus.
A similar situation is found in Exodus when the escaping Israelites are crossing the Red Sea. When G-d lets the waters of the sea return and drown the pursuing Egyptian army, some of the angels began to cheer. G-d says to them "My creations are dying, why are you laughing?"
Quit with the FACTS already!!!!
People don't realize that God set the Hebrews against the Canaanites for doing the very things that the secularists are promoting now -- idol worshipping, sexual immorality, and woman and child abuse. Also slavery, which I don't believe has ever been a Jewish custom, in principle if not in practice.