I never felt comfortable checking off 'aboriginal' on any forms or applications even thought I have native ancestry on my mother's side, even if what I identify with the most and involved with native issues, events, and such. That and I am pale white (more like nude beige). Since starting university, folks at the Native Centre (actually where I am writing from presently) I normally hang out and help out at suggests I should mark myself as non-status aboriginal and apply for aboriginal student funding or employment or services available to non-status. *shrugs*
Yet, it is true about how many natives who do not 'look' native due to having parents and grandparents of other ancestries, and they were born and lived on a reserve. Then there are those who clearly look native, yet are not status because their grandmother or great grandmother married someone non-native which resulted in lost of status, and since continued having mainly native family for generations since. Actually what happened to a couple of my (great) great grandmothers.
As long there is reserves and treaty land, special status for aboriginals, part of employment applications, benefits, student loans, etc for good or bad, people will continue to maintain their native or re-claim it.
Now as for the new regulation, the article is not clear about the how far back one can attest their ancestry. Status requires to be recent native familial connection to be accepted, like a grand parent who has status or had until marriage.
Oh, here is a factoid. A lot of the natives people I know and myself also have german ancestry, as seems to be a thing yay back when for german guys to fall in love and marry native women, or vice versa.