Untrue. Quite a few countries give residence on the basis of residency. Thailand, India, Singapore among others. Israel gives automatic citizenship to all Jews. The only western countries that give citizenship on birth are the Anglo countries - the USA, Canada, UK, Australia and New Zealand.

The issue came up when Baltic Germans from Russia, who had lived in that country for over 200 years, got German citizenship. While Turks who were born in Germany, and lived there for decades, did not. I believe Chancellor Schroeder changed those laws.