Fatal flaw, that section is not applicable to McCain, 1401 is.
From the link I cited earlier:
If you look again at 8 USC 1401(c) and 1403(a), you see a big difference. 8 USC 1401(c) address births outside the U.S., meaning clearly that the “born in the United States” clause of the 14th Amendment cannot apply to this form of citizenship. Therefore a person that falls under 8 USC 1401(c) has to be a naturalized citizen. 8 USC 1403(a) already “declares” citizenship and implies naturalization. The only logical conclusion is that the Canal Zone was considered to be outside the United States, else these sections (8 USC 1401(c) and 8 USC 1403(a)) never needed to be codified into law in the first place, and 8 USC 1401(a) would apply instead.