Yes Im well aware of all that happened in 1999 and IMO it was a good idea to give the children lesser titles. Even if they DID want to become Prince/ess now, and I'm fairly sure they dont, I think the public would not be too keen on the idea.
I think the queen would have liked to keep the children as titled as HRH, but she could see that the public were cooling on there being a lot of royals, too many of them working and trying to find a role, and carrying the style of HRH so she agreed to it in 1999. I think Edward and Sophie did not want their children to be Prince and Princess, they were well down the line of succession and were not supposed to be full time working royals and they were probalby pretty sure that in the next generation their kids would not be wanted as working royals. '
And I think they were right. I dont know of any evidence that Charles has said anything on the issue but in any case I think the public if asked would prefer it if the children remained as Lady and Earl.