An important note is that this will only affect land travel between the US and Canada. If you live on a Southern border state and like to travel to Mexico, you will need to get your children a passport. In addition, it appears if you travel by air between the countries, your children will need a passport.
I don't know, $82 isn't that much in the grand scheme of things, if you're planning a vacation out of the country, so long as you are able to plan ahead to get them. Since we tend to travel all over, and we may return to the Carribean again, we will all be getting passports - not all at once, as that might sting the pocketbook, but over the next several months.