It's not just about heritage though is it? What if Mrs Farage wants to move back to Germany? Can she not take her kids with her? With a pre-brexit British passport, this would not have been an issue. Now of course, it is. It's simply practical to do so and many other families with mixed nationalities will be doing exactly the same.
She probably couldn't have done that either way.
It's impossible to take underage kids to another country without the (explicit) consent of their father (if he has has parental responsibility - I take it Farage still has that). And if both countries are part of the Hague Abduction Convention (like Germany and the United Kingdom), they would be returned after a relatively swift legal procedure (well in Germany and the U.K. that is; if it's something like Tunisia - also a party- good luck with that). And the children don't need a German passport to live with you in Germany, if you have one (And it would always be quite easy for them to gain citizenship if their mother is German; granted it could possibly become a bit more difficult after Brexit because Germany is quite restrictive about allowing double nationalities for non-EU countries - or maybe they provide a tailormade arrangement like for the Turks, but most Brits wouldn't qualify for the present one).
So it's plain hypocrisy, I understand you might like Farage but still.