Ah Grandpa (his father immigrated over in 1914) served in the Korean War. Other half of the family was a wave of German farmers to Texas mid civil war and served in the Confederate Army. I am lucky that they are strangely meticulous keepers of family history.
And then your child will forever have trouble opening a bank account, and will have to file and potentially pay taxes for their entire adult life even if they never set foot on US soil again. This "exploit" often isn't worth it, unless the child will 100% certainly live in the US when they grow up.
In the eyes of Germany, if you parents were German you are German too, even if your parents never visited Germany.
The chain is only broken if you apply for foreign citizenship or serve in foreign armed forces.
To me it is bizarre that the mere fact of being on holiday in America at your time of birth makes you American.