Re: @Stork "what about our dual nationality children"
It hurts only if you live/work in a place with lower taxes than your own country, but doesn't matter at all if you live/work where taxes are higher than home.
Err, no. It still hurts twice because you are hostage to the wiles of the IRS, irrespective of where you live, or, put another way, the US retains leverage over you as a result of your US passport.
This is why a US passport holder is now unwanted in certain professions, not because they don't have the skills or the talent, but because they represent a risk to the organisation, certainly if they handle confidential matters. It would not be the first time the promise of extreme IRS harassment is used to force someone into doing things they would normally never dream of, and that's a risk few organisations handling sensitive matters are willing to take.
The other headache is the incessant need to annually prove your innocence to the IRS which extends to any bank you may want to use - the cost of the paperwork alone means that it's hard to get a bank account now as a US passport holder unless you have a high turnover as you represent a net loss to the bank. Ask any American in Switzerland, for instance, how easy it is to get a simple current account.
So no, being a US citizen abroad is starting to become a real major issue, even worse if you're not even aware you're subject to US law (the so called accidental American).