To clarify, on April 2, 2002, Monaco's constitution changed and implemented Princely Law 1.249 (seen here in its entirety:
List of Succession to the Monegasque Throne - Definition), which spells out clearly & concisely the rules of succession.
Basically, if Albert does not
legally marry and produce a
legitimate biological offspring, then the crown will automatically pass to his sister or her children. The
only way an illegitimate biological offspring can succeed to the throne is if his/her parents are legally married. In Albert's case, he would have to marry either Jazmin's mother or Alexandre's mother in order for either one of their children to inherit the throne. This is why you do not see Stephanie's youngest child, Camille, on the list of succession, because Stephanie never married Camille's father. End of story.
By the way, the 2002 succession law is more
strict than the one passed in 1918, namely the old law stated that the reigning prince could adopt an heir (be it biological or not; this is how Prince Louis II was able to make his illegitimate daughter, Charlotte, his heir) to succeed him upon his death if he died without a legitimate biological heir. This option no longer exists, now if the reigning prince dies without a legitimate biological heir, the crown passes automatically to the next sibling and his/her children.
Of course, any change to the constitution has to be approved by Monaco's Crown Council.
This is all pedantic really, as I'm sure Albert will legally marry Charlene Wittstock next summer on July 9, 2011, and eventually the two will produce a legitimate heir.
And I stand by what I stated earlier, Prince Albert's relationship with his children has always been
private, and should remain thus imho. Until He sees fit to change this, then abide by his code of privacy, silence, and respect on this delicate issue. In my humble opinion.
Edited To Add: I realize, of course, as long as there are busybodies who delight in making mischief, meddling in the affairs of others, and stirring the pot, Prince Albert & his children will be given no peace nor privacy regarding their relationship. C'est la vie...