Yes, baby will be dual. Have just arranged our appointment at the US embassy to get US birth certificate, passport, etc. sorted.
As for DH, yes we plan to move back to the US someday. Our goal is for the whole family to be dual citizens, which will involve a move back for at least 3 years. After all the money I've paid and the stress involved, I don't ever want any of us to have to bother with immigration red tape again.