It seems to me that part of the reason damane didn't have children is because the idea of a man having relations with a damane is viewed as something akin to bestiality--i.e., Tuon is pleased to find out Mat has been visiting the kennels in Ebou Dar to be nice to the newly leashed damane, but warns him to be careful, lest he be considered 'perverted' .

However, male channelers would be considered animals, same as female channelers. With the taint removed from saidin, I would imagine the Seanchan would begin breeding damane males and females to produce more powerful children. It's true that sul'dam (males and females) would keep the ability alive, but there could be outright breeding as well.