Hi,
Doing what i was saying won't remove from the drop down.
I am providing you screenshots from our DEMO:
Attachment Pasted_Image_1_26_14__2_15_AM-5.png not found
Attachment Pasted_Image_1_26_14__2_16_AM-3.png not found
Attachment Pasted_Image_1_26_14__2_17_AM-3.png not found
And the generic child variants are visible in the drop down:
demo.flexiblewebdesign.com/puremart/index.php/test-category/diesel-sweater-generic-child-variant-detail
Attachment Pasted_Image_1_26_14__2_18_AM-3.png not found
Make sure you setup the "Generic Child Variant" custom field correctly and you are not using any 3rd party custom field plugin. Because disabling this option:
Show uncategorised child products in search results and modules? won't hide the child products from the Generic Child Variant custom field drop down. I am sure about it 100%. The screenshots above also prove it.
Regards.
Support