Can the children of a convert to Reform Judaism be included in the Law of Return?

Aravah is correct. I think people confuse the state of Israel with the (very influential) Orthodox Rabbinate in Israel. Immigration matters are in the hands of the state, which accepts Reform converts (and all others) under the Law of Return. However, the Orthodox Rabbinate had such influence that to this day there is no way to be married in a Reform synagogue, nor to have a civil wedding (other religious weddings, eg Christian, Muslim and Druse, are permitted).