I think so too. I think she had him in Canada to take advantage of the “free” medical care there and also explains why she was in Seattle with a week old infant and visited her friend.
I also speculate that part of why she wanted to keep him was to snag FMD.
http://www.nathanielturner.com/frankmarshalldavispoet.htm
http://www2.hawaii.edu/~takara/frank_marshall_davis.htm
http://www.reformation.org/frank-marshall-davis-obama.html
http://www.usasurvival.org/docs/DavisNetworkHawaii.pdf