If neither Obama nor his parents re-applied for American citizenship after that, then he is not an American citizen at all, let alone natural born. He is an Indonesian citizen. He could have applied to be reinstated, but I dont believe that he did.
There are, of course, many other problems surrounding this issue. We dont know for sure without records and written evidence, but the probabilities are pretty high that he is not an American AT ALL.
Your post bears repeating in it's entirety.
The child is judged on his or her own merits, according to American law, and not until he or she is 18.
Everyone involved in the discussion knows this. What we want to see is the so-called "long form" of his birth certificate.