I agree with you, ReluctantCanadian - it shouldn't be a question of "why allow it?" but of "why not?"

I will be in a position to obtain Canadian citizenship next year. The German government, until recently, did not permit dual citizenship - in which case I would have opted to remain a permanent resident here and retain EU citizenship.

Under a new law (recently put in effect by our friend Mr. Schroeder) it's possible to apply for a "Special permission to retain German citizenship when naturalizing in a foreign country". The application process is a long and painful one, involving the creation of a portfolio that documents the applicant's ties with Germany (relatives, bank accounts, property) and proves that he would significantly suffer from not naturalizing abroad (i.e. in my case, I'm hoping to argue that my chosen career is to work for the Canadian Secret Service, which requires being a citizen).

Whether this process ensures that the future dual citizen has 'good intentions' about keeping his reponsibilities in both countries - not sure. But I can tell you, I'm infinitely thankful to the Canadian government for not requiring a similar procedure on their end.