I'm hoping things are not that bleak Terpe
read the following ..
http://freemovement.wordpress.com/20...tion-refusals/
and the comment by Davies Khan ( if your letter of reconsideration doesn't get your refusal over turned, it might be worth contacting Davies Khan as he has a very good reputation)
A client was refused visit entry clearance (Bangkok) on deception grounds for failing to disclose the existence of her child on the VAF, a fact that became apparent when spoken to by the ECO over the phone. That she freely admitted during the conversation to having a child was indicative of there being no deception, but the ECO chose to disregard this.
Representations to the ECM resulted in the decpetion allegation being withdrawn, and a second visit visa application was successful.
so as your wife freely admitted the child there was no deception.