I believe your research is flawed. The quote was from the INS Act of 1953, which can be found here. As near as I can tell that was the law in effect in 1961 when Obama was born. According to the provisions found in Act 301 and Act 309, Obama appears to be a natural born citizen even if he was born overseas.
All the statutory material is set forth; effective dates and relationship to the facts are described.
So if you want to sit here and argue the world is flat, you are welcome to do so. If you really want to address the legal issues, you pick up the statute and say here is the one that applies; here is why. You say Sec. 301 (or 309) applies--here is the subsection; here is what it says; here are the facts that would put Obama under the statute and make him a citizen. Read the opinion. Get a grip.