You are confusing and conflating wholly different reasons for the revocation of a U.S. Passport. The U.S. Supreme Court struck down statutes which caused the loss of U.S. citizenship due to acts of expatriation and failures to satisfy residency requirements, so the statutes for Immigration and Naturalization were revised to reflect those U.S. Supreme Court decisions. Revocation of a U.S. Passport due to fraudulent misrepresentations of material fact is unrelated to the expatriation ruled upon by the U.S. Supreme Court and remains very much in effect today. Recent examples of such revocations of a U.S. Passport include the former NAZI war criminals. In the case of Ted Cruz the quoted statute clearly requires the father to have naturalized as a U.S. citizen before the child could qualify for automatic U.S. citizenship to be transmitted from a U.S. citizen mother. Ted Cruz is therefore not a U.S. citizen, naturalized or natural born, unless he naturalized as a U.S. citizen after reaching the age of majority.
No.
Revocation of a U.S. Passport due to fraudulent misrepresentations of material fact is unrelated to the expatriation ruled upon by the U.S. Supreme Court and remains very much in effect today.
And your statement here shows why your first sentence quoted above is wrong: I was recognizing this very distinction and conflating nothing. It is possible to have a passport revoked without thereby also having one's citizenship revoked. These involve potentially differing standards.